SUNTRUST BANKS INC, 10-Q filed on 11/8/2013
Quarterly Report
Document and Entity Information
9 Months Ended
Sep. 30, 2013
Nov. 1, 2013
Entity Registrant Name
SUNTRUST BANKS INC 
 
Entity Central Index Key
0000750556 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Document Type
10-Q 
 
Document Period End Date
Sep. 30, 2013 
 
Document Fiscal Year Focus
2013 
 
Document Fiscal Period Focus
Q3 
 
Amendment Flag
false 
 
Entity Common Stock, Shares Outstanding
 
536,082,029 
Entity Well-known Seasoned Issuer
Yes 
 
Entity Voluntary Filers
No 
 
Entity Current Reporting Status
Yes 
 
Consolidated Statements of Income (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Interest Income
 
 
 
 
Interest and fees on loans
$ 1,148 
$ 1,257 
$ 3,474 
$ 3,820 
Interest and fees on loans held for sale
30 
29 
90 
84 
Interest and Dividend Income, Securities, Available-for-sale
143 
144 
429 
519 1
Trading account interest and other
18 
15 
52 
48 
Total interest income
1,339 
1,445 
4,045 
4,471 
Interest Expense
 
 
 
 
Interest on deposits
70 
98 
224 
342 
Interest on long-term debt
52 
66 
156 
244 
Interest on other borrowings
9 
10 
25 
29 
Total interest expense
131 
174 
405 
615 
Net, interest income
1,208 
1,271 
3,640 
3,856 
Provision for Loan, Lease, and Other Losses
95 
450 2
453 2
1,067 2
Interest Income (Expense), after Provision for Loan Loss
1,113 
821 
3,187 
2,789 
Noninterest Income
 
 
 
 
Service charges on deposit accounts
168 
172 
492 
504 
Investment Advisory, Management and Administrative Fees
133 
127 
387 
387 
Investment Advisory Fees
68 
60 
198 
180 
Fees and Commissions, Other
91 
97 
277 
305 
Investment Banking Revenue
99 
83 
260 
230 
Trading Gains (Losses)
33 
19 
124 
145 
Fees and Commissions, Credit and Debit Cards
77 
74 
231 
239 
Fees and Commissions, Mortgage Banking
(10)
(64)
282 
102 
Servicing Fees, Net
11 
64 
50 
215 
Gain (Loss) on Sale of Securities, Net
0 3
1,941 4
2 4
1,973 4
Noninterest Income, Other Operating Income
10 
(31)
98 
78 
Total noninterest income
680 
2,542 
2,401 
4,358 
Noninterest Expense
 
 
 
 
Employee compensation
611 
670 
1,856 
1,977 
Other Labor-related Expenses
71 
110 
322 
363 
Outside processing and software
190 
171 
555 
527 
Net occupancy expense
86 
92 
261 
267 
Federal Deposit Insurance Corporation Premium Expense
45 
67 
140 
179 
Equipment Expense
45 
49 
136 
140 
Operating losses
350 
71 
461 
200 
Credit and collection services
139 
65 
224 
181 
Marketing and Advertising Expense
34 
75 
95 
134 
Other Staff Expense
22 
41 
46 
75 
Amortization of Intangible Assets
6 
 
18 
31 
Amortization of Intangible Assets and Impairment of Goodwill
 
17 
 
39 
Gains (Losses) on Sales of Other Real Estate
4 
30 
4 
133 
Net loss/(gain) on extinguishment of debt
0 
2 
0 
15 
Other Noninterest Expense
140 
266 
385 
583 
Noninterest Expense
1,743 
1,726 
4,503 
4,813 
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest
50 
1,637 
1,085 
2,334 
Income Tax Expense (Benefit)
(146)
551 
151 
710 
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest
196 
1,086 
934 
1,624 
Net Income (Loss) Attributable to Noncontrolling Interest
7 
9 
16 
22 
Net Income (Loss) Attributable to Parent
189 
1,077 
918 
1,602 
Net income/(loss) available to common shareholders
$ 179 
$ 1,066 
$ 884 
$ 1,581 
Earnings Per Share, Diluted
$ 0.33 
$ 1.98 
$ 1.64 
$ 2.94 
Earnings Per Share, Basic
$ 0.33 
$ 1.99 
$ 1.65 
$ 2.96 
Common Stock, Dividends, Per Share, Declared
$ 0.10 
$ 0.05 
$ 0.25 
$ 0.15 
Weighted Average Number of Shares Outstanding, Diluted
538,850 
538,699 
539,488 
537,538 
Weighted Average Number of Shares Outstanding, Basic
533,829 
534,506 
534,887 
533,859 
Consolidated Statements of Income (Parenthetical) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Dividends on common stock of The Coca-Cola Company
$ 0 
$ 0 
$ 0 
$ 31 1
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities
0 
3 
1 
7 
Mortgage-backed Securities, Issued by Private Enterprises [Member]
 
 
 
 
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities
0 
0 
0 
0 
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss, before Tax, Including Portion Attributable to Noncontrolling Interest, Available-for-sale Securities
0 
3 2
1 2
7 2
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities
$ 0 
$ 3 2
$ 1 2
$ 7 2
Consolidated Statement of Comprehensive Income (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Net Income (Loss) Attributable to Parent
$ 189 
$ 1,077 
$ 918 
$ 1,602 
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax
(11)
(1,448)
(466)
(1,256)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax
(26)
204 
(189)
34 
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax
4 
5 
30 
(23)
Other Comprehensive Income (Loss), Net of Tax
(33)
(1,239)
(625)
(1,245)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent
$ 156 
$ (162)
$ 293 
$ 357 
Consolidated Statement of Comprehensive Income (Parenthetical) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax
$ (7)
$ (795)
$ (272)
$ (688)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax Effect
(15)
111 
(111)
15 
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Tax
$ 3 
$ 3 
$ 18 
$ (13)
Consolidated Balance Sheets (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Assets
 
 
Cash and Due from Banks
$ 3,041 
$ 7,134 
Federal Funds Sold and Securities Purchased under Agreements to Resell
1,222 
1,101 
Interest-bearing deposits in other banks
23 
22 
Cash and cash equivalents
4,286 
8,257 
Trading assets
5,731 
6,049 
Available-for-sale Securities
22,626 
21,953 
Loans Held for Sale
2,462 1
3,399 
Loans held for investment
124,340 2
121,470 2
Loans and Leases Receivable, Allowance
2,071 
2,174 
Net loans
122,269 
119,296 
Premises and equipment
1,515 
1,564 
Goodwill
6,369 
6,369 
Intangible Assets, Net (Excluding Goodwill)
1,287 
956 
Other real estate owned
196 
264 
Other Assets
5,036 
5,335 
Total assets
171,777 
173,442 
Liabilities and Shareholders' Equity
 
 
Noninterest-bearing consumer and commercial deposits
39,006 
39,481 
Interest-bearing consumer and commercial deposits
87,855 
90,699 
Total consumer and commercial deposits
126,861 
130,180 
Brokered time deposits
2,022 
2,136 
Total deposits
128,883 
132,316 
Funds purchased
934 
617 
Securities Sold under Agreements to Repurchase
1,574 3
1,574 3
Other Short-term Borrowings
4,479 
3,303 
Long-term Debt
9,985 4
9,357 4
Trading liabilities
1,264 
1,161 
Other liabilities
3,588 
4,129 
Total liabilities
150,707 
152,457 
Preferred Stock, Value, Outstanding
725 
725 
Common Stock, Value, Outstanding
550 
550 
Additional paid in capital
9,117 
9,174 
Retained earnings
11,573 
10,817 
Treasury stock, at cost, and other
(579)5
(590)5
AOCI, net of tax
(316)
309 
Total shareholders' equity
21,070 
20,985 
Total liabilities and shareholders' equity
171,777 
173,442 
Common Stock, Shares, Outstanding
537,549 
538,959 
Common shares authorized
750,000 
750,000 
Preferred Stock, Shares Outstanding
7 
7 
Preferred Stock, Shares Authorized
50,000 
50,000 
Treasury shares of common stock
12,372 
10,962 
Stockholders' Equity Attributable to Noncontrolling Interest
$ 116 
$ 114 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Per Share data, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Loans Held-for-sale, Fair Value Disclosure
$ 2,240 1
$ 3,243 1
Loans Receivable, Fair Value Disclosure
316 2
379 2
Servicing Asset at Fair Value, Amount
1,248 
899 
Trading Securities Pledged as Collateral
764 
727 
Deposits, Fair Value Disclosure
784 
832 
Long-term Debt, Fair Value
1,593 3
1,622 3
Common stock, par value
$ 1.00 
$ 1.00 
Loans Receivable Held-for-sale, Net
2,462 1
3,399 
Loans held for investment
124,340 2
121,470 2
Long-term Debt
9,985 3
9,357 3
Stockholders' Equity Attributable to Noncontrolling Interest
116 
114 
Variable Interest Entity, Primary Beneficiary
 
 
Long-term Debt, Fair Value
284 
286 
Loans Receivable Held-for-sale, Net
314 
319 
Loans held for investment
336 
365 
Long-term Debt
$ 634 
$ 666 
Consolidated Statements of Shareholders' Equity (USD $)
In Millions, except Share data, unless otherwise specified
Total
Preferred Stock [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Treasury Stock and Other
Accumulated Other Comprehensive Income (Loss) [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, beginning of period at Dec. 31, 2011
$ 20,066 
$ 275 
$ 550 
$ 9,306 
$ 8,978 
$ (792)1
$ 1,749 2
Common Stock, Shares, Outstanding, beginning of period at Dec. 31, 2011
 
 
537,000,000 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
Net Income (Loss) Attributable to Parent
1,602 
 
 
 
1,602 
 
 
Other Comprehensive Income (Loss), Net of Tax
(1,245)
 
 
 
 
 
(1,245)2
Noncontrolling Interest, Period Increase (Decrease)
7 
 
 
 
 
7 1
 
Dividends, Common Stock, Cash
(81)
 
 
 
(81)
 
 
Dividends, Preferred Stock, Cash
(8)
 
 
 
(8)
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period
 
 
1,000,000 
 
 
 
 
Stock Issued During Period, Value, Stock Options Exercised
16 
 
 
(35)
 
51 1
 
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures
 
 
1,000,000 
 
 
 
 
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures
5 
 
 
(64)
 
69 1
 
Adjustments to Additional Paid in Capital, Share-based Compensation, Restricted Stock Unit or Restricted Stock Award, Requisite Service Period Recognition
22 
 
 
 
 
22 1
 
Stock Issued During Period, Value, Employee Benefit Plan
15 
 
 
(12)
 
27 1
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, end of period at Sep. 30, 2012
20,399 
275 
550 
9,195 
10,491 
(616)1
504 2
Common Stock, Shares, Outstanding, end of period at Sep. 30, 2012
 
 
539,000,000 
 
 
 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, beginning of period at Dec. 31, 2012
20,985 
725 
550 
9,174 
10,817 
(590)1
309 2
Common Stock, Shares, Outstanding, beginning of period at Dec. 31, 2012
538,959,000 
 
539,000,000 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
Net Income (Loss) Attributable to Parent
918 
 
 
 
918 
 
 
Other Comprehensive Income (Loss), Net of Tax
(625)
 
 
 
 
 
(625)2
Noncontrolling Interest, Period Increase (Decrease)
2 
 
 
 
 
2 1
 
Dividends, Common Stock, Cash
(134)
 
 
 
(134)
 
 
Dividends, Preferred Stock, Cash3
(28)
 
 
 
(28)
 
 
Treasury Stock, Shares, Acquired
 
 
(3,000,000)
 
 
 
 
Treasury Stock, Value, Acquired, Cost Method
(100)
 
 
 
 
(100)1
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period
 
 
1,000,000 
 
 
 
 
Stock Issued During Period, Value, Stock Options Exercised
16 
 
 
(24)
 
40 1
 
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures
 
 
1,000,000 
 
 
 
 
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures
5 
 
 
(35)
 
40 1
 
Adjustments to Additional Paid in Capital, Share-based Compensation, Restricted Stock Unit or Restricted Stock Award, Requisite Service Period Recognition
24 
 
 
 
 
24 1
 
Stock Issued During Period, Value, Employee Benefit Plan
7 
 
 
2 
 
5 1
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, end of period at Sep. 30, 2013
$ 21,070 
$ 725 
$ 550 
$ 9,117 
$ 11,573 
$ (579)1
$ (316)2
Common Stock, Shares, Outstanding, end of period at Sep. 30, 2013
537,549,000 
 
538,000,000 
 
 
 
 
Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $)
In Millions, except Per Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Common stock dividends, per share
$ 0.25 
$ 0.15 
Treasury Stock, Value
$ (579)1
 
Stockholders' Equity Attributable to Noncontrolling Interest
116 
 
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax
54 
607 
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax
342 
603 
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax
(712)
(706)
Treasury Stock and Other
 
 
Treasury Stock, Value
(636)
(673)
Deferred Compensation Equity
(59)
(57)
Stockholders' Equity Attributable to Noncontrolling Interest
$ 116 
$ 114 
Series A Preferred Stock [Member]
 
 
Preferred Stock, Dividends, Per Share, Cash Paid
$ 3,044 
$ 3,056 
Series B Preferred Stock [Member]
 
 
Preferred Stock, Dividends, Per Share, Cash Paid
$ 3,044 
$ 3,056 
Series E Preferred Stock [Member]
 
 
Preferred Stock, Dividends, Per Share, Cash Paid
$ 4,325 
$ 0 
Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Cash Flows from Operating Activities:
 
 
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest
$ 934 
$ 1,624 
Adjustments to reconcile net income/(loss) to net cash provided by operating activities:
 
 
Depreciation, amortization, and accretion
542 
567 
Origination of Mortgage Servicing Rights (MSRs)
302 
244 
Provisions for credit losses and foreclosed property
495 
1,191 
Mortgage repurchase provision
102 
701 
Stock option compensation and amortization of restricted stock compensation
25 
26 
Gain (Loss) on Sale of Securities, Net
2 1
1,973 1
Net gain on sale of assets
(169)
(839)
Net decrease/(increase) in loans held for sale
1,200 
(199)
Net (increase)/decrease in other assets
(95)
393 
Net increase/(decrease) in other liabilities
(148)
(339)
Net cash provided by operating activities
2,582 
908 
Cash Flows from Investing Activities:
 
 
Proceeds from maturities, calls, and paydowns of securities available for sale
4,672 
5,431 
Proceeds from sales of securities available for sale
529 
4,195 
Purchases of securities available for sale
(6,744)
(3,097)
Net (increase)/decrease in loans including purchases of loans
(4,525)
(4,390)
Proceeds from sales of loans
730 
1,572 
Capital expenditures
(104)
(168)
Payments related to acquisitions, including contingent consideration
0 
13 
Proceeds from Sale of Other Real Estate
403 
427 
Net cash (used in)/provided by investing activities
(5,039)
3,957 
Cash Flows from Financing Activities:
 
 
Net (decrease)/increase in total deposits
(3,433)
(696)
Net increase/(decrease) in funds purchased, securities sold under agreements to repurchase, and other short-term borrowings
1,493 
(2,645)
Proceeds from the issuance of long-term debt
747 
4,000 
Repayment of long-term debt
(77)
(4,359)
Payments for Repurchase of Common Stock
(100)
0 
Common and preferred dividends paid
(162)
(89)
Stock option activity
18 
22 
Net cash provided by/(used in) financing activities
(1,514)
(3,767)
Net (decrease)/increase in cash and cash equivalents
(3,971)
1,098 
Cash and cash equivalents at beginning of period
8,257 
4,509 
Cash and cash equivalents at end of period
4,286 
5,607 
Supplemental Disclosures:
 
 
Transfer of Loans Held-for-sale to Portfolio Loans
28 
34 
Loans transferred from loans to loans held for sale
200 
3,112 
Transfer to Other Real Estate
$ 197 
$ 304 
Significant Accounting Policies
Significant Accounting Policies [Text Block]
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete consolidated financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the results of operations in these financial statements, have been
made.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could vary from these estimates. Certain reclassifications have been made to prior period amounts to conform to the current period presentation.

The Company evaluated subsequent events through the date its financial statements were issued.

These financial statements should be read in conjunction with the Company’s 2012 Annual Report on Form 10-K. There have been no significant changes to the Company’s accounting policies as disclosed in the Company’s 2012 Annual Report on Form 10-K.
Accounting Policies Recently Adopted and Pending Accounting Pronouncements
In December 2011, the FASB issued ASU 2011-11, "Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities." The ASU requires additional disclosures about financial instruments and derivative instruments that are offset or subject to an enforceable master netting arrangement or similar agreement. In January 2013, the FASB issued ASU 2013-01, “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities”, which more narrowly defined the scope of financial instruments to only include derivatives, repurchase and reverse repurchase agreements, and securities borrowing and lending transactions. The Company adopted these ASUs as of January 1, 2013, and the adoption did not have an impact on the Company's financial position, results of operations, or EPS. See Note 2, "Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell" and Note 11, "Derivative Financial Instruments."
In February 2013, the FASB issued ASU 2013-02, "Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income" which provides disclosure guidance on amounts reclassified out of AOCI by component. The Company adopted the ASU as of January 1, 2013, and the adoption did not have an impact on the Company's financial position, results of operations, or EPS. See Note 16, "Accumulated Other Comprehensive Income."
In March 2013, the FASB issued ASU 2013-04, "Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date (a consensus of the FASB Emerging Issues Task Force)." The ASU requires additional disclosures about joint and several liability arrangements and requires the Company to measure obligations resulting from joint and several liability arrangements as the sum of the amount the Company agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the Company expects to pay on behalf of its co-obligors. The ASU is effective for the fiscal years and interim periods beginning after December 15, 2013. The Company is evaluating the impact of the ASU; however, it is not expected to have a significant impact on the Company's financial position, results of operations, or EPS.
In June 2013, the FASB issued ASU 2013-08, "Financial Services—Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements." The ASU clarifies the characteristics of an investment company and requires an investment company to measure noncontrolling ownership interests in other investment companies at fair value rather than using the equity method of accounting. The ASU is effective for the fiscal years and interim periods beginning after December 15, 2013. The Company is evaluating the impact of the ASU; however, it is not expected to have a significant impact on the Company's financial position, results of operations, or EPS.

In July 2013, the FASB issued ASU 2013-10, “Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes (a consensus of the Emerging Issues Task Force).” The ASU permits the Fed Funds Effective Swap Rate (OIS) to be used as a benchmark interest rate for hedge accounting purposes, in addition to U.S. Treasury rates, and LIBOR. The amendments also remove the restriction on using different benchmark rates for similar hedges. The ASU was effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The ASU has no impact on the Company's current hedging relationships and, thus, no impact on the Company's financial position, results of operations, or EPS.

In July 2013, the FASB issued ASU 2013-11,“Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the Emerging Issues Task Force).” Prior to this ASU, U.S. GAAP did not include explicit guidance on the financial statement presentation of a UTB when a NOL carryforward, a similar tax loss, or a tax credit carryforward exists. The ASU requires, with limited exceptions, that a UTB, or a portion of a UTB, should be presented in the financial statements as a reduction to a DTA for a NOL carryforward, a similar tax loss, or a tax credit carryforward. The ASU is effective for fiscal years and interim periods beginning after December 15, 2013. As early adoption is permitted, the Company adopted this ASU upon issuance and it resulted in an immaterial reclassification within liabilities in the Consolidated Balance Sheets. As this ASU only impacts financial statement presentation and related footnote disclosures, there will be no impact on the Company's financial position, results of operations, or EPS.
Federal Funds Sold and Securities Borrowed or Purchased Under Agreements to Resell
Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure [Text Block]
NOTE 2 - FEDERAL FUNDS SOLD AND SECURITIES BORROWED OR PURCHASED UNDER AGREEMENTS TO RESELL

Fed funds sold and securities borrowed or purchased under agreements to resell were as follows:

(Dollars in millions)
September 30, 2013
 
December 31, 2012
Fed funds

$97

 

$29

Securities borrowed
241

 
155

Resell agreements
884

 
917

Total fed funds sold and securities borrowed or purchased under agreements to resell

$1,222

 

$1,101


Securities purchased under agreements to resell are primarily collateralized by U.S. government or agency securities and are carried at the amounts at which securities will be subsequently resold. Securities borrowed are primarily collateralized by corporate securities. The Company takes possession of all securities purchased under agreements to resell and securities borrowed and performs the appropriate margin evaluation on the acquisition date based on market volatility, as necessary. It is the Company's policy to obtain possession of collateral with a fair value between 95% to 110% of the principal amount loaned under resale and securities borrowing agreements. The total market value of the collateral held was $1.1 billion at both September 30, 2013 and December 31, 2012, of which $263 million and $246 million was repledged, respectively.

The Company has also pledged $764 million and $727 million of trading assets to secure $756 million and $703 million of repurchase agreements at September 30, 2013 and December 31, 2012, respectively.

Netting of Securities - Repurchase and Resell Agreements
The Company has various financial assets and financial liabilities that are subject to enforceable master netting agreements or similar agreements. The Company's derivatives that are subject to enforceable master netting agreements or similar agreements are discussed in Note 11, "Derivative Financial Instruments." Securities purchased under agreements to resell and securities sold under agreements to repurchase are governed by a MRA. Under the terms of the MRA, all transactions between the Company and the counterparty constitute a single business relationship such that in the event of default, the nondefaulting party is entitled to set off claims and apply property held by that party in respect of any transaction against obligations owed. Any payments, deliveries, or other transfers may be applied against each other and netted. These amounts are limited to the contract asset/liability balance, and accordingly, do not include excess collateral received/pledged.

The following table presents the Company's eligible securities borrowed or purchased under agreements to resell and securities sold under agreements to repurchase at September 30, 2013 and December 31, 2012:
(Dollars in millions)
Gross
Amount
 
Amount
Offset
 
Net Amount
Presented in
Consolidated
Balance Sheets
 
Held/Pledged
Financial
Instruments
 
Net
Amount
September 30, 2013
 
 
 
 
 
 
 
 
 
Financial assets:
 
 
 
 
 
 
 
 
 
Securities borrowed or purchased under agreements to resell

$1,125

 

$—

 

$1,125

1, 2 

$1,117

 

$8

Financial liabilities:
 
 
 
 
 
 
 
 
 
Securities sold under agreements to repurchase
1,574

 
—

 
1,574

1 
1,574

 
—

 
 
 
 
 
 
 
 
 
 
December 31, 2012
 
 
 
 
 
 
 
 
 
Financial assets:
 
 
 
 
 
 
 
 
 
Securities borrowed or purchased under agreements to resell

$1,072

 

$—

 

$1,072

1,2 

$1,069

 

$3

Financial liabilities:
 
 
 
 
 
 
 
 
 
Securities sold under agreements to repurchase
1,574

 
—

 
1,574

1 
1,574

 
—


1 None of the Company's repurchase and reverse repurchase transactions met the right of setoff criteria at September 30, 2013 and December 31, 2012.
2 Excludes $97 million and $29 million of Fed funds sold which are not subject to a master netting agreement at September 30, 2013 and December 31, 2012, respectively.
Securities Available for Sale
Securities Available for Sale
NOTE 3 – SECURITIES AVAILABLE FOR SALE
Securities Portfolio Composition
 
September 30, 2013
(Dollars in millions)
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities

$792

 

$7

 

$28

 

$771

Federal agency securities
2,167

 
53

 
49

 
2,171

U.S. states and political subdivisions
239

 
8

 
2

 
245

MBS - agency
18,223

 
449

 
314

 
18,358

MBS - private
167

 
1

 
2

 
166

ABS
95

 
2

 
1

 
96

Corporate and other debt securities
40

 
3

 
—

 
43

Other equity securities1
775

 
1

 
—

 
776

Total securities AFS

$22,498

 

$524

 

$396

 

$22,626

 
 
 
 
 
 
 
 
 
December 31, 2012
(Dollars in millions)
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities

$212

 

$10

 

$—

 

$222

Federal agency securities
1,987

 
85

 
3

 
2,069

U.S. states and political subdivisions
310

 
15

 
5

 
320

MBS - agency
17,416

 
756

 
3

 
18,169

MBS - private
205

 
4

 
—

 
209

ABS
214

 
5

 
3

 
216

Corporate and other debt securities
42

 
4

 
—

 
46

Other equity securities1
701

 
1

 
—

 
702

Total securities AFS

$21,087

 

$880

 

$14

 

$21,953

1At September 30, 2013, other equity securities was comprised of the following: $266 million in FHLB of Atlanta stock, $402 million in Federal Reserve Bank stock, $107 million in mutual fund investments, and $1 million of other. At December 31, 2012, other equity securities was comprised of the following: $229 million in FHLB of Atlanta stock, $402 million in Federal Reserve Bank stock, $69 million in mutual fund investments, and $2 million of other.

The following table presents interest and dividends on securities AFS:
 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
2013
 
2012
 
2013
 
2012
Taxable interest

$132

 

$132

 

$397

 

$454

Tax-exempt interest
3

 
4

 
8

 
12

Dividends1
8

 
8

 
24

 
53

Total interest and dividends

$143

 

$144

 

$429

 

$519

1Includes dividends on Coke common stock of $31 million for the nine months ended September 30, 2012.

Securities AFS that were pledged to secure public deposits, repurchase agreements, trusts, and other funds had a fair value of $10.0 billion and $10.6 billion at September 30, 2013 and December 31, 2012, respectively. At September 30, 2013 and December 31, 2012, there were no securities AFS pledged under secured borrowing arrangements under which the secured party has possession of the collateral and would customarily sell or repledge that collateral, other than in an event of default of the Company.

The amortized cost and fair value of investments in debt securities at September 30, 2013, by estimated average life, are shown below. Actual cash flows may differ from estimated average lives and contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties.
 
Distribution of Maturities
(Dollars in millions)
1 Year
or Less
 
1-5
Years
 
5-10
Years
 
After 10
Years
 
Total
Amortized Cost:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities

$1

 

$201

 

$590

 

$—

 

$792

Federal agency securities
41

 
1,410

 
563

 
153

 
2,167

U.S. states and political subdivisions
97

 
89

 
9

 
44

 
239

MBS - agency
1,730

 
9,369

 
3,795

 
3,329

 
18,223

MBS - private
—

 
160

 
7

 
—

 
167

ABS
74

 
20

 
1

 
—

 
95

Corporate and other debt securities
—

 
22

 
18

 
—

 
40

Total debt securities

$1,943

 

$11,271

 

$4,983

 

$3,526

 

$21,723

Fair Value:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities

$1

 

$208

 

$562

 

$—

 

$771

Federal agency securities
41

 
1,458

 
523

 
149

 
2,171

U.S. states and political subdivisions
99

 
93

 
10

 
43

 
245

MBS - agency
1,824

 
9,677

 
3,717

 
3,140

 
18,358

MBS - private
—

 
159

 
7

 
—

 
166

ABS
73

 
21

 
2

 
—

 
96

Corporate and other debt securities
—

 
25

 
18

 
—

 
43

Total debt securities

$2,038

 

$11,641

 

$4,839

 

$3,332

 

$21,850

 Weighted average yield1
2.89
%
 
2.93
%
 
2.20
%
 
2.69
%
 
2.72
%
1Average yields are based on amortized cost and presented on a FTE basis.


Securities in an Unrealized Loss Position
The Company held certain investment securities where amortized cost exceeded fair market value, resulting in unrealized loss positions. Market changes in interest rates and credit spreads may result in temporary unrealized losses as the market price of securities fluctuates. At September 30, 2013, the Company did not intend to sell these securities nor was it more-likely-than-not that the Company would be required to sell these securities before their anticipated recovery or maturity. The Company has reviewed its portfolio for OTTI in accordance with the accounting policies in the Company's 2012 Annual Report on Form 10-K.
 
September 30, 2013
 
Less than twelve months
 
Twelve months or longer
 
Total
(Dollars in millions)
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized  
Losses
Temporarily impaired securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities

$563

 

$28

 

$—

 

$—

 

$563

 

$28

Federal agency securities
637

 
48

 
18

 
1

 
655

 
49

U.S. states and political subdivisions
—

 
—

 
20

 
2

 
20

 
2

MBS - agency
7,147

 
311

 
84

 
3

 
7,231

 
314

ABS
—

 
—

 
13

 
1

 
13

 
1

Total temporarily impaired securities
8,347

 
387

 
135

 
7

 
8,482

 
394

OTTI securities1:
 
 
 
 
 
 
 
 
 
 
 
MBS - private
113

 
2

 
—

 
—

 
113

 
2

Total OTTI securities
113

 
2

 
—

 
—

 
113

 
2

Total impaired securities

$8,460

 

$389

 

$135

 

$7

 

$8,595

 

$396


 
December 31, 2012
 
Less than twelve months
 
Twelve months or longer
 
Total
(Dollars in millions)
Fair
   Value   
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Temporarily impaired securities:
 
 
 
 
 
 
 
 
 
 
 
Federal agency securities

$298

 

$3

 

$—

 

$—

 

$298

 

$3

U.S. states and political subdivisions
1

 
—

 
24

 
5

 
25

 
5

MBS - agency
1,212

 
3

 
—

 
—

 
1,212

 
3

ABS
—

 
—

 
13

 
2

 
13

 
2

Total temporarily impaired securities
1,511

 
6

 
37

 
7

 
1,548

 
13

OTTI securities1:
 
 
 
 
 
 
 
 
 
 
 
ABS
—

 
—

 
3

 
1

 
3

 
1

Total OTTI securities
—

 
—

 
3

 
1

 
3

 
1

Total impaired securities

$1,511

 

$6

 

$40

 

$8

 

$1,551

 

$14

1Includes OTTI securities for which credit losses have been recorded in earnings in current or prior periods.

Unrealized losses on securities that have been in a temporarily impaired position for longer than twelve months included municipal ARS, federal agency securities, agency MBS, and one ABS collateralized by 2004 vintage home equity loans. The municipal securities are backed by investment grade rated obligors; however, the fair value of these securities continues to be impacted by the lack of a functioning ARS market and the extension of time for expected refinance and repayment. No credit loss is expected on these securities. The fair value of agency MBS has declined due to the increase in market interest rates. The ABS continues to receive timely principal and interest payments, and is evaluated quarterly for credit impairment. Cash flow analysis shows that the underlying collateral can withstand highly stressed loss assumptions without incurring a credit loss.

The portion of unrealized losses on securities that have been other-than-temporarily impaired that relates to factors other than credit is recorded in AOCI. Losses related to credit impairment on these securities are determined through estimated cash flow analyses and have been recorded in earnings in current or prior periods.

Realized Gains and Losses and Other-than-Temporarily Impaired Securities
 
Three Months Ended September 30
 
Nine Months Ended September 30
 
(Dollars in millions)
2013
 
2012
 
2013
 
2012
 
Gross realized gains

$—



$1,944

1 

$4

 

$1,980

1 
Gross realized losses
—

 
—

 
(1
)
 
—

 
OTTI
—

 
(3
)
 
(1
)
 
(7
)
 
Net securities gains

$—

 

$1,941

 

$2

 

$1,973

 

1 Included in these amounts are $305 million in losses recognized during the three and nine months ended September 30, 2012 related to the termination of the Agreements that hedge the Coke common stock.

Credit impairment that is determined through the use of cash flow models is estimated using cash flows on security specific collateral and the transaction structure. Future expected credit losses are determined by using various assumptions, the most significant of which include default rates, prepayment rates, and loss severities. If, based on this analysis, the security is in an unrealized loss position and the Company does not expect to recover the entire amortized cost basis of the security, the expected cash flows are then discounted at the security’s initial effective interest rate to arrive at a present value amount. OTTI credit losses reflect the difference between the present value of cash flows expected to be collected and the amortized cost basis of these securities.

The Company continues to reduce existing exposure primarily through paydowns. In certain instances, the amount of impairment losses recognized in earnings includes credit losses on debt securities that exceeds the total impairment, and as a result, the securities may have unrealized gains in AOCI relating to factors other than credit.

The securities that gave rise to credit impairments recognized during the three and nine months ended September 30, 2013 and 2012, as shown in the table below, consisted of private MBS and ABS with a fair value of approximately $23 million and $217 million, respectively, at September 30, 2013 and 2012.
 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
2013
 
2012
 
2013
 
2012
OTTI1

$—

 

$—

 

$—

 

$—

Portion of gains/(losses) recognized in OCI (before taxes)
—

 
3

 
1

 
7

Net impairment losses recognized in earnings

$—

 

$3

 

$1

 

$7

1 The initial OTTI amount represents the excess of the amortized cost over the fair value of AFS debt securities. For subsequent impairments of the same security, amount includes additional declines in the fair value subsequent to the previously recorded OTTI, if applicable, until such time the security is no longer in an unrealized loss position.

The following is a rollforward of credit losses recognized in earnings for the three and nine months ended September 30, 2013 and 2012, related to securities for which the Company does not intend to sell and it is not more-likely-than-not that the Company will be required to sell as of the end of each period presented. Subsequent credit losses may be recorded on securities without a corresponding further decline in fair value when there has been a decline in expected cash flows.
 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
2013
 
2012
 
2013
 
2012
Balance, beginning of period

$32

 

$28

 

$31

 

$25

Additions:
 
 
 
 
 
 
 
OTTI credit losses on previously impaired securities
—

 
3

 
1

 
7

Reductions:
 
 
 
 
 
 
 
Increases in expected cash flows recognized over the remaining life of the securities
(1
)
 
—

 
(1
)
 
(1
)
Balance, end of period

$31

 

$31

 

$31

 

$31


The following table presents a summary of the significant inputs used in determining the measurement of credit losses recognized in earnings for private MBS and ABS for the nine months ended September 30:
 
2013
 
2012
Default rate
2 - 9%
 
2 - 9%
Prepayment rate
7 - 21%
 
7 - 21%
Loss severity
46 - 74%
 
40 - 56%


Assumption ranges represent the lowest and highest lifetime average estimates of each security for which credit losses were recognized in earnings. Ranges may vary from period to period as the securities for which credit losses are recognized vary. Additionally, severity may vary widely when losses are few and large.
Loans
Loans
NOTE 4 - LOANS
Composition of Loan Portfolio
The composition of the Company's loan portfolio is shown in the following table:
(Dollars in millions)
September 30,
2013
 
December 31, 2012
Commercial loans:
 
 
 
C&I

$55,943

 

$54,048

CRE
4,755

 
4,127

Commercial construction
737

 
713

Total commercial loans
61,435

 
58,888

Residential loans:
 
 
 
Residential mortgages - guaranteed
3,527

 
4,252

Residential mortgages - nonguaranteed1
24,106

 
23,389

Home equity products
14,826

 
14,805

Residential construction
582

 
753

Total residential loans
43,041

 
43,199

Consumer loans:
 
 
 
Guaranteed student loans
5,489

 
5,357

Other direct
2,670

 
2,396

Indirect
11,035

 
10,998

Credit cards
670

 
632

Total consumer loans
19,864

 
19,383

LHFI

$124,340

 

$121,470

LHFS

$2,462

 

$3,399

1Includes $316 million and $379 million of loans carried at fair value at September 30, 2013 and December 31, 2012, respectively.

During the three months ended September 30, 2013 and 2012, the Company transferred $56 million and $2.0 billion in LHFI to LHFS, and $11 million and $3 million in LHFS to LHFI, respectively. Additionally, during the three months ended September 30, 2013 and 2012, the Company sold $99 million and $515 million in loans and leases for gains of less than $1 million for both periods.
During the nine months ended September 30, 2013 and 2012, the Company transferred $200 million and $3.1 billion in LHFI to LHFS, and $28 million and $34 million in LHFS to LHFI, respectively. Additionally, during the nine months ended September 30, 2013 and 2012, the Company sold $761 million and $1.5 billion in loans and leases for a gain of $7 million and $36 million, respectively.

Credit Quality Evaluation
The Company evaluates the credit quality of its loan portfolio by employing a dual internal risk rating system, which assigns both PD and LGD ratings to derive expected losses. Assignment of PD and LGD ratings are predicated upon numerous factors, including consumer credit risk scores, rating agency information, borrower/guarantor financial capacity, LTV ratios, collateral type, debt service coverage ratios, collection experience, other internal metrics/analysis, and qualitative assessments.
For the commercial portfolio, the Company believes that the most appropriate credit quality indicator is an individual loan’s risk assessment expressed according to the broad regulatory agency classifications of Pass or Criticized. The Company's risk rating system is granular, with multiple risk ratings in both the Pass and Criticized categories. Pass ratings reflect relatively low PDs; whereas, criticized assets have a higher PD. The granularity in Pass ratings assists in the establishment of pricing, loan structures, approval requirements, reserves, and ongoing credit management requirements. The Company conforms to the following regulatory classifications for Criticized assets: Other Assets Especially Mentioned (or Special Mention), Adversely Classified, Doubtful, and Loss. However, for the purposes of disclosure, management believes the most meaningful distinction within the Criticized categories is between Accruing Criticized (which includes Special Mention and a portion of Adversely Classified) and Nonaccruing Criticized (which includes a portion of Adversely Classified and Doubtful and Loss). This distinction identifies those relatively higher risk loans for which there is a basis to believe that the Company will collect all amounts due from those where full collection is less certain.
Risk ratings are refreshed at least annually, or more frequently as appropriate, based upon considerations such as market conditions, loan characteristics, and portfolio trends. Additionally, management routinely reviews portfolio risk ratings, trends, and concentrations to support risk identification and mitigation activities.
For consumer and residential loans, the Company monitors credit risk based on indicators such as delinquencies and FICO scores. The Company believes that consumer credit risk, as assessed by the industry-wide FICO scoring method, is a relevant credit quality indicator. Borrower-specific FICO scores are obtained at origination as part of the Company’s formal underwriting process, and refreshed FICO scores are obtained by the Company at least quarterly.
For government-guaranteed loans, the Company monitors the credit quality based primarily on delinquency status, as it is a more relevant indicator of credit quality due to the government guarantee. At September 30, 2013 and December 31, 2012, 84% and 89%, respectively, of the guaranteed student loan portfolio was current with respect to payments. At September 30, 2013 and December 31, 2012, 82% and 83%, respectively, of the guaranteed residential loan portfolio was current with respect to payments. Loss exposure to the Company on these loans is mitigated by the government guarantee.
LHFI by credit quality indicator are shown in the tables below:
 
Commercial Loans
 
C&I
 
CRE
 
Commercial construction
(Dollars in millions)
September 30,
2013
 
December 31, 2012
 
September 30,
2013
 
December 31, 2012
 
September 30,
2013
 
December 31, 2012
Credit rating:
 
 
 
 
 
 
 
 
 
 
 
Pass

$54,162

 

$52,292

 

$4,421

 

$3,564

 

$672

 

$506

Criticized accruing
1,565

 
1,562

 
292

 
497

 
48

 
173

Criticized nonaccruing
216

 
194

 
42

 
66

 
17

 
34

Total

$55,943

 

$54,048

 

$4,755

 

$4,127

 

$737

 

$713

 
Residential Loans 1
 
Residential mortgages -
nonguaranteed
 
Home equity products
 
Residential construction
(Dollars in millions)
September 30,
2013
 
December 31, 2012
 
September 30,
2013
 
December 31, 2012
 
September 30,
2013
 
December 31, 2012
Current FICO score range:
 
 
 
 
 
 
 
 
 
 
 
700 and above

$18,593

 

$17,410

 

$11,588

 

$11,339

 

$439

 

$561

620 - 699
3,740

 
3,850

 
2,250

 
2,297

 
101

 
123

Below 6202
1,773

 
2,129

 
988

 
1,169

 
42

 
69

Total

$24,106

 

$23,389

 

$14,826

 

$14,805

 

$582

 

$753

 
Consumer Loans 3
 
Other direct
 
Indirect
 
Credit cards
(Dollars in millions)
September 30,
2013
 
December 31, 2012
 
September 30,
2013
 
December 31, 2012
 
September 30,
2013
 
December 31, 2012
Current FICO score range:
 
 
 
 
 
 
 
 
 
 
 
700 and above

$2,238

 

$1,980

 

$8,214

 

$8,300

 

$466

 

$435

620 - 699
372

 
350

 
2,223

 
2,038

 
164

 
152

Below 6202
60

 
66

 
598

 
660

 
40

 
45

Total

$2,670

 

$2,396

 

$11,035

 

$10,998

 

$670

 

$632


1Excludes $3.5 billion and $4.3 billion at September 30, 2013 and December 31, 2012, respectively, of guaranteed residential loans. At September 30, 2013 and December 31, 2012, the majority of these loans had FICO scores of 700 and above.
2For substantially all loans with refreshed FICO scores below 620, the borrower’s FICO score at the time of origination exceeded 620 but has since deteriorated as the loan has seasoned.
3Excludes $5.5 billion and $5.4 billion at September 30, 2013 and December 31, 2012, respectively, of guaranteed student loans.
The payment status for the LHFI portfolio is shown in the tables below:
 
September 30, 2013
(Dollars in millions)
Accruing
Current
 
Accruing
30-89 Days
Past Due
 
Accruing
90+ Days
Past Due
 
 Nonaccruing 2
 
Total
Commercial loans:
 
 
 
 
 
 
 
 
 
C&I

$55,663

 

$43

 

$21

 

$216

 

$55,943

CRE
4,706

 
5

 
2

 
42

 
4,755

Commercial construction
720

 
—

 
—

 
17

 
737

Total commercial loans
61,089

 
48

 
23

 
275

 
61,435

Residential loans:
 
 
 
 
 
 
 
 
 
Residential mortgages - guaranteed
2,878

 
40

 
609

 
—

 
3,527

Residential mortgages - nonguaranteed1
23,463

 
156

 
23

 
464

 
24,106

Home equity products
14,496

 
121

 
—

 
209

 
14,826

Residential construction
498

 
4

 
1

 
79

 
582

Total residential loans
41,335

 
321

 
633

 
752

 
43,041

Consumer loans:
 
 
 
 
 
 
 
 
 
Guaranteed student loans
4,629

 
361

 
499

 
—

 
5,489

Other direct
2,650

 
15

 
1

 
4

 
2,670

Indirect
10,974

 
54

 
1

 
6

 
11,035

Credit cards
658

 
6

 
6

 
—

 
670

Total consumer loans
18,911

 
436

 
507

 
10

 
19,864

Total LHFI

$121,335

 

$805

 

$1,163

 

$1,037

 

$124,340

1Includes $316 million of loans carried at fair value, the majority of which were accruing current.
2Nonaccruing loans past due 90 days or more totaled $718 million. Nonaccruing loans past due fewer than 90 days include modified nonaccrual loans reported as TDRs and performing second lien loans which are classified as nonaccrual when the first lien loan is nonperforming. 

 
December 31, 2012
(Dollars in millions)
Accruing
Current
 
Accruing
30-89 Days
Past Due
 
Accruing
90+ Days
Past Due
 
 Nonaccruing 2
 
Total
Commercial loans:
 
 
 
 
 
 
 
 
 
C&I

$53,747

 

$81

 

$26

 

$194

 

$54,048

CRE
4,050

 
11

 
—

 
66

 
4,127

Commercial construction
679

 
—

 
—

 
34

 
713

Total commercial loans
58,476

 
92

 
26

 
294

 
58,888

Residential loans:
 
 
 
 
 
 
 
 
 
Residential mortgages - guaranteed
3,523

 
39

 
690

 
—

 
4,252

Residential mortgages - nonguaranteed1
22,401

 
192

 
21

 
775

 
23,389

Home equity products
14,314

 
149

 
1

 
341

 
14,805

Residential construction
625

 
15

 
1

 
112

 
753

Total residential loans
40,863

 
395

 
713

 
1,228

 
43,199

Consumer loans:
 
 
 
 
 
 
 
 
 
Guaranteed student loans
4,769

 
556

 
32

 
—

 
5,357

Other direct
2,372

 
15

 
3

 
6

 
2,396

Indirect
10,909

 
68

 
2

 
19

 
10,998

Credit cards
619

 
7

 
6

 
—

 
632

Total consumer loans
18,669

 
646

 
43

 
25

 
19,383

Total LHFI

$118,008

 

$1,133

 

$782

 

$1,547

 

$121,470

1Includes $379 million of loans carried at fair value, the majority of which were accruing current.
2Nonaccruing loans past due 90 days or more totaled $975 million. Nonaccruing loans past due fewer than 90 days include modified nonaccrual loans reported as TDRs and performing second lien loans which are classified as nonaccrual when the first lien loan is nonperforming.



Impaired Loans

A loan is considered impaired when it is probable that the Company will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the agreement. Commercial nonaccrual loans greater than $3 million and certain consumer, residential, and commercial loans whose terms have been modified in a TDR are individually evaluated for impairment. Smaller-balance homogeneous loans that are collectively evaluated for impairment are not included in the following tables. Additionally, the tables below exclude guaranteed student loans and guaranteed residential mortgages for which there was nominal risk of principal loss.
 
September 30, 2013
 
December 31, 2012
(Dollars in millions)
Unpaid
Principal
Balance
 
Amortized   
Cost1
 
Related
Allowance
 
Unpaid
Principal
Balance
 
Amortized   
Cost1
 
Related
Allowance
Impaired loans with no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
C&I

$90

 

$63

 

$—

 

$59

 

$40

 

$—

CRE
5

 
4

 
—

 
6

 
5

 
—

Commercial construction
1

 
—

 
—

 
45

 
45

 
—

Total commercial loans
96

 
67

 
—

 
110

 
90

 
—

Impaired loans with an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
C&I
37

 
35

 
14

 
46

 
38

 
6

CRE
8

 
3

 
—

 
15

 
7

 
1

Commercial construction
6

 
4

 
—

 
5

 
3

 
—

Total commercial loans
51

 
42

 
14

 
66

 
48

 
7

Residential loans:
 
 
 
 
 
 
 
 
 
 
 
Residential mortgages - nonguaranteed
2,348

 
2,000

 
230

 
2,346

 
2,046

 
234

Home equity products
708

 
633

 
96

 
661

 
612

 
88

Residential construction
262

 
198

 
26

 
259

 
201

 
26

Total residential loans
3,318

 
2,831

 
352

 
3,266

 
2,859

 
348

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
Other direct
15

 
15

 
1

 
14

 
14

 
2

Indirect
83

 
82

 
4

 
46

 
46

 
2

Credit cards
15

 
15

 
3

 
21

 
21

 
5

Total consumer loans
113

 
112

 
8

 
81

 
81

 
9

Total impaired loans

$3,578

 

$3,052

 

$374

 

$3,523

 

$3,078

 

$364


1Amortized cost reflects charge-offs that have been recognized plus other amounts that have been applied to reduce the net book balance.

Included in the impaired loan balances above were $2.7 billion and $2.4 billion of accruing TDRs, at amortized cost, at September 30, 2013 and December 31, 2012, respectively, of which 96% and 95% were current, respectively. See Note 1, “Significant Accounting Policies,” to the Company's 2012 Annual Report on Form 10−K, for further information regarding the Company’s loan impairment policy.




 
Three Months Ended September 30
 
Nine Months Ended September 30
 
2013
 
2012
 
2013
 
2012
(Dollars in millions)
Average
Amortized
Cost
 
Interest
Income
Recognized1
 
Average
Amortized
Cost
 
Interest
Income
Recognized1
 
Average
Amortized
Cost
 
Interest
Income
Recognized1
 
Average
Amortized
Cost
 
Interest
Income
Recognized1
Impaired loans with no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
C&I

$84

 

$—

 

$97

 

$—

 

$58

 

$1

 

$107

 

$1

CRE
5

 
—

 
52

 
2

 
6

 
—

 
62

 
3

Commercial construction
1

 
—

 
64

 
—

 
1

 
—

 
71

 
1

Total commercial loans
90

 
—

 
213

 
2

 
65

 
1

 
240

 
5

Impaired loans with an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
C&I
35

 
—

 
44

 
—

 
25

 
1

 
42

 
1

CRE
3

 
—

 
21

 
—

 
3

 
—

 
22

 
—

Commercial construction
4

 
—

 
6

 
—

 
2

 
—

 
6

 
—

Total commercial loans
42

 
—

 
71

 
—

 
30

 
1

 
70

 
1

Residential loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgages - nonguaranteed
2,002

 
23

 
2,053

 
20

 
2,013

 
71

 
2,059

 
62

Home equity products
634

 
7

 
536

 
7

 
640

 
17

 
541

 
20

Residential construction
199

 
3

 
227

 
3

 
200

 
8

 
234

 
8

Total residential loans
2,835

 
33

 
2,816

 
30

 
2,853

 
96

 
2,834

 
90

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other direct
15

 
—

 
13

 
—

 
16

 
—

 
13

 
—

Indirect
84

 
1

 
31

 
1

 
87

 
3

 
32

 
2

Credit cards
15

 
—

 
23

 
—

 
17

 
1

 
25

 
1

Total consumer loans
114

 
1

 
67

 
1

 
120

 
4

 
70

 
3

Total impaired loans

$3,081

 

$34

 

$3,167

 

$33

 

$3,068

 

$102

 

$3,214

 

$99

1 Of the interest income recognized during the three and nine months ended September 30, 2013, cash basis interest income was $1 million and $6 million, respectively.
Of the interest income recognized during the three and nine months ended September 30, 2012, cash basis interest income was $6 million and $15 million, respectively.


NPAs are shown in the following table:
(Dollars in millions)
September 30, 2013
 
December 31, 2012
Nonaccrual/NPLs:
 
 
 
Commercial loans:
 
 
 
C&I

$216

 

$194

CRE
42

 
66

Commercial construction
17

 
34

Residential loans:
 
 
 
Residential mortgages - nonguaranteed
464

 
775

Home equity products
209

 
341

Residential construction
79

 
112

Consumer loans:
 
 
 
Other direct
4

 
6

Indirect
6

 
19

Total nonaccrual/NPLs2
1,037

 
1,547

OREO1
196

 
264

Other repossessed assets
9

 
9

Nonperforming LHFS
59

 
37

Total NPAs

$1,301

 

$1,857

1Does not include foreclosed real estate related to loans insured by the FHA or the VA. Proceeds due from the FHA and the VA are recorded as a receivable in other assets until the funds are received and the property is conveyed. The receivable amount related to proceeds due from the FHA or the VA totaled $175 million and $140 million at September 30, 2013 and December 31, 2012, respectively.
2 Nonaccruing restructured loans are included in total nonaccrual/NPLs.

Restructured Loans
TDRs are loans in which the borrower is experiencing financial difficulty, and the Company has granted an economic concession to the borrower that it would not otherwise consider. When loans are modified under the terms of a TDR, the Company typically offers the borrower an extension of the loan maturity date and/or a reduction in the original contractual interest rate. In certain limited situations, the Company may offer to restructure a loan in a manner that ultimately results in the forgiveness of contractually specified principal balances.
At September 30, 2013 and December 31, 2012, the Company had $4 million and $1 million, respectively, in commitments to lend additional funds to debtors whose terms have been modified in a TDR.
The number and amortized cost of loans modified under the terms of a TDR during the three and nine months ended September 30, 2013, by type of modification, are shown in the following tables:
 
 Three Months Ended September 30, 20131
(Dollars in millions)
Number of Loans Modified
 
Principal
 Forgiveness 2
 
Rate
 Modification 3
 
Term Extension and/or Other Concessions
 
Total
Commercial loans:
 
 
 
 
 
 
 
 
 
C&I
28
 

$—

 

$—

 

$39

 

$39

CRE
—

 
—

 
—

 
—

 
—

Commercial construction
1

 
—

 
—

 
—

 
—

Residential loans:
 
 
 
 
 
 
 
 
 
Residential mortgages - nonguaranteed
332
 
—

 
61

 
14

 
75

Home equity products
715
 
—

 
19

 
12

 
31

Residential construction
25
 
—

 
4

 
—

 
4

Consumer loans:
 
 
 
 
 
 
 
 
 
Other direct
30
 
—

 
—

 
1

 
1

Indirect
883
 
—

 
—

 
18

 
18

Credit cards
97
 
—

 
—

 
—

 
—

Total TDRs
2,111

 

$—

 

$84

 

$84

 

$168


 
Nine Months Ended September 30, 20131
(Dollars in millions)
Number of Loans Modified
 
Principal
 Forgiveness 2
 
Rate
 Modification 3
 
Term Extension and/or Other Concessions
 
Total
Commercial loans:
 
 
 
 
 
 
 
 
 
C&I
124
 

$18

 

$2

 

$89

 

$109

CRE
5
 
—

 
4

 
1

 
5

Commercial construction
1
 
—

 
—

 
—

 
—

Residential loans:
 
 
 
 
 
 
 
 
 
Residential mortgages - nonguaranteed
1,245
 
—

 
122

 
84

 
206

Home equity products
2,153
 
—

 
56

 
60

 
116

Residential construction
242
 
—

 
22

 
3

 
25

Consumer loans:
 
 
 
 
 
 
 
 
 
Other direct
110
 
—

 
—

 
3

 
3

Indirect
2,617
 
—

 
—

 
50

 
50

Credit cards
483
 
—

 
2

 
—

 
2

Total TDRs
6,980
 

$18

 

$208

 

$290

 

$516

1Includes loans modified under the terms of a TDR that were charged-off during the period.
2Restructured loans which had forgiveness of amounts contractually due under the terms of the loan typically have had multiple concessions including rate modifications and/or term extensions. There were no charge-offs associated with principal forgiveness during the three months ended September 30, 2013. The total amount of charge-offs associated with principal forgiveness during the nine months ended September 30, 2013 was $2 million.
3Restructured loans which had a modification of the loan's contractual interest rate may also have had an extension of the loan's contractual maturity date and/or other concessions. The financial effect of modifying the interest rate on the loans modified as a TDR was immaterial to the financial statements during the three and nine months ended September 30, 2013.

 
Three Months Ended September 30, 20121
(Dollars in millions)
Number of Loans Modified
 
Principal
 Forgiveness 2
 
Rate
 Modification 3
 
Term Extension and/or Other Concessions
 
Total
Commercial loans:
 
 
 
 
 
 
 
 
 
C&I
87
 

$4

 

$1

 

$6

 

$11

CRE
4
 
5

 
—

 
—

 
5

Commercial construction
3
 
1

 
—

 
2

 
3

Residential loans:
 
 
 
 
 
 
 
 
 
Residential mortgages - nonguaranteed
279
 
—

 
20

 
1

 
21

Home equity products
431
 
—

 
26

 
4

 
30

Residential construction
165
 
—

 
—

 
25

 
25

Consumer loans:
 
 
 
 
 
 
 
 
 
Other direct
42
 
—

 
—

 
1

 
1

Indirect
1,000
 
—

 
—

 
17

 
17

Credit cards
281
 
—

 
2

 
—

 
2

Total TDRs
2,292
 

$10

 

$49

 

$56

 

$115



 
Nine Months Ended September 30, 20121
(Dollars in millions)
Number of Loans Modified
 
Principal
 Forgiveness 2
 
Rate
 Modification 3
 
Term Extension and/or Other Concessions
 
Total
Commercial loans:
 
 
 
 
 
 
 
 
 
C&I
270
 

$4

 

$3

 

$21

 

$28

CRE
27
 
17

 
7

 
2

 
26

Commercial construction
15
 
3

 
—

 
13

 
16

Residential loans:
 
 
 
 
 
 
 
 
 
Residential mortgages - nonguaranteed
703
 
—

 
61

 
2

 
63

Home equity products
1,272
 
—

 
90

 
7

 
97

Residential construction
340
 
—

 
1

 
54

 
55

Consumer loans:
 
 
 
 
 
 
 
 
 
Other direct
81
 
—

 
—

 
2

 
2

Indirect
1,795
 
—

 
—

 
31

 
31

Credit cards
1,144
 
—

 
7

 
—

 
7

Total TDRs
5,647
 

$24

 

$169

 

$132

 

$325

1Includes loans modified under the terms of a TDR that were charged-off during the period.
2Restructured loans which had forgiveness of amounts contractually due under the terms of the loan typically have had multiple concessions including rate modifications and/or term extensions. The total amount of charge-offs associated with principal forgiveness during the three and nine months ended September 30, 2012, was $1 million and $2 million, respectively.
3Restructured loans which had a modification of the loan's contractual interest rate may also have had an extension of the loan's contractual maturity date and/or other concessions. The financial effect of modifying the interest rate on the loans modified as a TDR was immaterial to the financial statements during the three and nine months ended September 30, 2012.



For the three and nine months ended September 30, 2013, the table below represents defaults on loans that were first modified between the periods January 1, 2012 and September 30, 2013, that became 90 days or more delinquent, or were charged-off, during the three and nine months ended September 30, 2013.

 
Three Months Ended September 30, 2013
 
Nine Months Ended September 30, 2013
(Dollars in millions)
Number of Loans
 
Amortized Cost
 
Number of Loans
 
Amortized Cost
Commercial loans:
 
 
 
 
 
 
 
C&I
3
 

$—

 
45
 

$—

CRE
—

 
—

 
4
 
3

Commercial construction
—

 
—

 
1
 
—

Residential loans:
 
 
 
 
 
 
 
Residential mortgages
63
 
9

 
219
 
19

Home equity products
37
 
2

 
138
 
8

Residential construction
26
 
1

 
42
 
2

Consumer loans:
 
 
 
 
 
 
 
Other direct
5

 
—

 
14
 
—

Indirect
55

 
1

 
143
 
2

Credit cards
53
 
—

 
132
 
1

Total TDRs
242

 

$13

 
738
 

$35



For the three and nine months ended September 30, 2012, the table below represents defaults on loans that were first modified between the periods January 1, 2011 and September 30, 2012, that became 90 days or more delinquent, or were charged-off, during the three and nine months ended September 30, 2012.

 
Three Months Ended September 30, 2012
 
Nine Months Ended September 30, 2012
(Dollars in millions)
Number of Loans
 
Amortized Cost
 
Number of Loans
 
Amortized Cost
Commercial loans:
 
 
 
 
 
 
 
C&I
38
 

$1

 
63
 

$4

CRE
—

 
—

 
4
 
4

Commercial construction
2
 
—

 
9
 
6

Residential loans:
 
 
 
 
 
 
 
Residential mortgages
31
 
2

 
87
 
16

Home equity products
32
 
2

 
113
 
9

Residential construction
6
 
1

 
23
 
3

Consumer loans:
 
 
 
 
 
 
 
Other direct
2
 
—

 
4
 
—

Indirect
15
 
—

 
15
 
—

Credit cards
33
 
—

 
168
 
1

Total TDRs
159

 

$6

 
486
 

$43



The majority of loans that were modified and subsequently became 90 days or more delinquent have remained on nonaccrual status since the time of modification.

Concentrations of Credit Risk
The Company does not have a significant concentration of risk to any individual client except for the U.S. government and its agencies. However, a geographic concentration arises because the Company operates primarily in the Southeastern and Mid-Atlantic regions of the U.S. The Company engages in limited international banking activities. The Company’s total cross-border outstanding loans were $827 million and $562 million at September 30, 2013 and December 31, 2012, respectively.
The major concentrations of credit risk for the Company arise by collateral type in relation to loans and credit commitments. The only significant concentration that exists is in loans secured by residential real estate. At September 30, 2013, the Company owned $43.0 billion in residential loans, representing 35% of total LHFI, and had $11.2 billion in commitments to extend credit on home equity lines and $3.9 billion in mortgage loan commitments. Of the residential loans owned at September 30, 2013, 8% were guaranteed by a federal agency or a GSE. At December 31, 2012, the Company owned $43.2 billion in residential loans, representing 36% of total LHFI, and had $11.7 billion in commitments to extend credit on home equity lines and $9.2 billion in mortgage loan commitments. Of the residential loans owned at December 31, 2012, 10% were guaranteed by a federal agency or a GSE.
Included in the residential mortgage portfolio were $12.8 billion and $13.7 billion of mortgage loans at September 30, 2013 and December 31, 2012, respectively, that included terms such as an interest only feature, a high original LTV ratio, or a second lien position that may increase the Company’s exposure to credit risk and result in a concentration of credit risk. Of these mortgage loans, $6.0 billion and $7.6 billion, respectively, were interest only loans, primarily with a ten year interest only period. Approximately $1.2 billion of those interest only loans at September 30, 2013, and $1.5 billion at December 31, 2012, were loans with no mortgage insurance and were either first liens with combined original LTV ratios in excess of 80% or were second liens. Additionally, the Company owned approximately $6.8 billion and $6.1 billion of amortizing loans with no mortgage insurance at September 30, 2013 and December 31, 2012, respectively, comprised of first liens with combined original LTV ratios in excess of 80% and second liens. Despite changes in underwriting guidelines that have curtailed the origination of high LTV loans, the balances of such loans have increased due to lending to high credit quality clients.
Allowance for Credit Losses
Allowance for Credit Losses
NOTE 5 - ALLOWANCE FOR CREDIT LOSSES
The allowance for credit losses consists of the ALLL and the reserve for unfunded commitments. Activity in the allowance for credit losses is summarized in the table below:
 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
2013
 
2012
 
2013
 
2012
Balance at beginning of period

$2,172

 

$2,350

 

$2,219

 

$2,505

Provision for loan losses
92

 
450

 
448

 
1,065

Provision for unfunded commitments
3

 
—

 
5

 
2

Loan charge-offs
(189
)
 
(585
)
 
(695
)
 
(1,445
)
Loan recoveries
43

 
74

 
144

 
162

Balance at end of period

$2,121

 

$2,289

 

$2,121

 

$2,289

 
 
 
 
 
 
 
 
Components:
 
 
 
 
 
 
 
ALLL

$2,071

 

$2,239

 
 
 
 
Unfunded commitments reserve1
50

 
50

 
 
 
 
Allowance for credit losses

$2,121

 

$2,289

 
 
 
 
1 The unfunded commitments reserve is recorded in other liabilities in the Consolidated Balance Sheets.

Activity in the ALLL by segment is presented in the tables below:

 
Three Months Ended September 30, 2013
(Dollars in millions)
Commercial
 
Residential
 
Consumer
 
Total
Balance at beginning of period

$919

 

$1,046

 

$160

 

$2,125

Provision for loan losses
77

 
(6
)
 
21

 
92

Loan charge-offs
(52
)
 
(109
)
 
(28
)
 
(189
)
Loan recoveries
13

 
21

 
9

 
43

Balance at end of period

$957

 

$952

 

$162

 

$2,071

 
 
 
 
 

 

 
Three Months Ended September 30, 2012
(Dollars in millions)
Commercial
 
Residential
 
Consumer
 
Total
Balance at beginning of period

$887

 

$1,277

 

$136

 

$2,300

Provision for loan losses
127

 
300

 
23

 
450

Loan charge-offs
(126
)
 
(425
)
 
(34
)
 
(585
)
Loan recoveries
55

 
10

 
9

 
74

Balance at end of period

$943

 

$1,162

 

$134

 

$2,239

 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2013
(Dollars in millions)
Commercial
 
Residential
 
Consumer
 
Total
Balance at beginning of period

$902

 

$1,131

 

$141

 

$2,174

Provision for loan losses
183

 
184

 
81

 
448

Loan charge-offs
(176
)
 
(430
)
 
(89
)
 
(695
)
Loan recoveries
48

 
67

 
29

 
144

Balance at end of period

$957

 

$952

 

$162

 

$2,071

 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2012
(Dollars in millions)
Commercial
 
Residential
 
Consumer
 
Total
Balance at beginning of period

$964

 

$1,354

 

$139

 

$2,457

Provision for loan losses
214

 
788

 
63

 
1,065

Loan charge-offs
(346
)
 
(1,001
)
 
(98
)
 
(1,445
)
Loan recoveries
111

 
21

 
30

 
162

Balance at end of period

$943

 

$1,162

 

$134

 

$2,239




As discussed in Note 1, “Significant Accounting Policies,” to the Company's 2012 Annual Report on Form 10−K, the ALLL is composed of both specific allowances for certain nonaccrual loans and TDRs and general allowances grouped into loan pools based on similar characteristics. No allowance is required for loans carried at fair value. Additionally, the Company records an immaterial allowance for loan products that are guaranteed by government agencies, as there is nominal risk of principal loss.

The Company’s LHFI portfolio and related ALLL is shown in the tables below:
 
September 30, 2013
 
Commercial
 
Residential
 
Consumer
 
Total
(Dollars in millions)
Carrying
Value
 
Associated
ALLL
 
Carrying
Value
 
Associated
ALLL
 
Carrying
Value
 
Associated
ALLL
 
Carrying
Value
 
Associated
ALLL
Individually evaluated

$109

 

$14

 

$2,831

 

$352

 

$112

 

$8

 

$3,052

 

$374

Collectively evaluated
61,326

 
943

 
39,894

 
600

 
19,752

 
154

 
120,972

 
1,697

Total evaluated
61,435

 
957

 
42,725

 
952

 
19,864

 
162

 
124,024

 
2,071

LHFI at fair value
—

 
—

 
316

 
—

 
—

 
—

 
316

 
—

Total LHFI

$61,435

 

$957

 

$43,041

 

$952

 

$19,864

 

$162

 

$124,340

 

$2,071

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2012
 
Commercial
 
Residential
 
Consumer
 
Total
(Dollars in millions)
Carrying
Value
 
Associated
ALLL
 
Carrying
Value
 
Associated
ALLL
 
Carrying
Value
 
Associated
ALLL
 
Carrying
Value
 
Associated
ALLL
Individually evaluated

$138

 

$7

 

$2,859

 

$348

 

$81

 

$9

 

$3,078

 

$364

Collectively evaluated
58,750

 
895

 
39,961

 
783

 
19,302

 
132

 
118,013

 
1,810

Total evaluated
58,888

 
902

 
42,820

 
1,131

 
19,383

 
141

 
121,091

 
2,174

LHFI at fair value
—

 
—

 
379

 
—

 
—

 
—

 
379

 
—

Total LHFI

$58,888

 

$902

 

$43,199

 

$1,131

 

$19,383

 

$141

 

$121,470

 

$2,174

Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets

NOTE 6 – GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill
Goodwill is required to be tested for impairment on an annual basis, which is performed by the Company during the third quarter, or as events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount or indicate that it is more likely than not that a goodwill impairment exists when the carrying amount of a reporting unit is zero or negative. The fair value of the reporting units is determined by using discounted cash flow analyses and, when applicable, guideline company information. When the reporting unit is not a legal entity with a stand-alone equity balance, the carrying value of the reporting units is determined using an equity allocation methodology that allocates the total equity of the Company to each of its reporting units considering both regulatory risk-based capital and tangible assets relative to tangible equity. See "Critical Accounting Policies" in our 2012 Annual Report on Form 10-K for further information regarding our goodwill accounting policy. The Company performed a goodwill impairment analysis for all of its reporting units with goodwill balances at September 30, 2013 and determined that the fair value was in excess of the respective carrying value by the following percentages:

Consumer Banking and Private Wealth Management        56%
Wholesale Banking                    14%
RidgeWorth Capital Management                  141%

During the second quarter of 2013, branch-managed business banking clients were transferred from Wholesale Banking to Consumer Banking and Private Wealth Management, resulting in the reallocation of $300 million in goodwill. Also, as discussed in Note 20, "Business Segment Reporting," to the Company's 2012 Annual Report on Form 10-K, the Company reorganized its segment reporting structure and goodwill reporting units during the first quarter of 2012. The changes in the carrying amount of goodwill by reportable segment for the nine months ended September 30 are as follows:
(Dollars in millions)
Retail
Banking
 
Diversified
Commercial
Banking
 
CIB
 
W&IM
 
Consumer Banking and Private Wealth Management
 
Wholesale Banking
 
Total
Balance, January 1, 2013

$—

 

$—

 

$—

 

$—

 

$3,962

 

$2,407

 

$6,369

Intersegment transfers
—

 
—

 
—

 
—

 
300

 
(300
)
 
—

Balance, September 30, 2013

$—

 

$—

 

$—

 

$—

 

$4,262

 

$2,107

 

$6,369

Balance, January 1, 2012

$4,854

 

$928

 

$180

 

$382

 

$—

 

$—

 

$6,344

Intersegment transfers
(4,854
)
 
(928
)
 
(180
)
 
(382
)
 
3,930

 
2,414

 
—

Acquisition of FirstAgain, LLC
—

 
—

 
—

 
—

 
32

 
—

 
32

Impairment of GenSpring
—

 
—

 
—

 
—

 
—

 
(7
)
 
(7
)
Balance, September 30, 2012

$—

 

$—

 

$—

 

$—

 

$3,962

 

$2,407

 

$6,369




Other Intangible Assets
Changes in the carrying amounts of other intangible assets for the nine months ended September 30 are as follows:
(Dollars in millions)
Core Deposit  
Intangibles
 
 MSRs -
Fair Value
 
Other
 
Total
Balance, January 1, 2013

$17

 

$899

 

$40

 

$956

Amortization
(10
)
 
—

 
(8
)
 
(18
)
MSRs originated
—

 
302

 
—

 
302

Changes in fair value:
 
 
 
 
 
 
 
Due to changes in inputs and assumptions 1
—

 
260

 
—

 
260

Other changes in fair value 2
—

 
(212
)
 
—

 
(212
)
Sale of MSRs
—

 
(1
)
 
—

 
(1
)
Balance, September 30, 2013

$7

 

$1,248

 

$32

 

$1,287

Balance, January 1, 2012

$38

 

$921

 

$58

 

$1,017

Amortization
(17
)
 
—

 
(14
)
 
(31
)
MSRs originated
—

 
244

 
—

 
244

Changes in fair value:
 
 
 
 
 
 
 
Due to changes in inputs and assumptions 1
—

 
(157
)
 
—

 
(157
)
Other changes in fair value 2
—

 
(173
)
 
—

 
(173
)
Sale of MSRs
—

 
(4
)
 
—

 
(4
)
Balance, September 30, 2012

$21

 

$831

 

$44

 

$896

1 Primarily reflects changes in discount rates and prepayment speed assumptions, due to changes in interest rates.
2 Represents changes due to the collection of expected cash flows, net of accretion, due to the passage of time.
 
 
 
 
 
 

Mortgage Servicing Rights
The Company retains MSRs from certain of its sales or securitizations of residential mortgage loans. MSRs on residential mortgage loans are the only servicing assets capitalized by the Company and are classified within intangible assets on the Company's Consolidated Balance Sheets.
Income earned by the Company on its MSRs is derived primarily from contractually specified mortgage servicing fees and late fees, net of curtailment costs. Such income earned for the three and nine months ended September 30, 2013 was $79 million and $232 million, respectively, and $75 million and $238 million for the three and nine months ended September 30, 2012, respectively. These amounts are reported in mortgage servicing related income in the Consolidated Statements of Income.
At September 30, 2013 and December 31, 2012, the total unpaid principal balance of mortgage loans serviced was $139.7 billion and $144.9 billion, respectively. Included in these amounts were $109.2 billion and $113.2 billion at September 30, 2013 and December 31, 2012, respectively, of loans serviced for third parties. During the nine months ended September 30, 2013 and 2012, the Company sold MSRs, at a price approximating their fair value, on residential loans with an unpaid principal balance of $2.1 billion and $1.7 billion, respectively.

At the end of each quarter, the Company determines the fair value of the MSRs using a valuation model that calculates the present value of the estimated future net servicing income. The model incorporates a number of assumptions as MSRs do not trade in an active and open market with readily observable prices. The Company determines fair value using market based prepayment rates, discount rates, and other assumptions that are compared to various sources of market data including independent third party valuations and industry surveys. Senior management and the STM valuation committee review all significant assumptions quarterly since many factors can affect the fair value of MSRs. Changes to the valuation model inputs and assumptions are reflected in the periods' results.

A summary of the key characteristics, inputs, and economic assumptions used to estimate the fair value of the Company’s MSRs at September 30, 2013 and December 31, 2012, and the sensitivity of the fair values to immediate 10% and 20% adverse changes in those assumptions are shown in the table below. While the overall change in MSRs during the nine months ended September 30, 2013 was primarily due to originations, substantially all of the change in fair value of retained MSRs during the nine months ended September 30, 2013 was driven by an increase in prevailing interest rates during the same period.
(Dollars in millions)
September 30, 2013
 
December 31, 2012
Fair value of retained MSRs

$1,248

 

$899

Prepayment rate assumption (annual)
9
%
 
16
%
Decline in fair value from 10% adverse change

$40

 

$50

Decline in fair value from 20% adverse change
77

 
95

Discount rate (annual)
12
%
 
11
%
Decline in fair value from 10% adverse change

$62

 

$37

Decline in fair value from 20% adverse change
118

 
70

Weighted-average life (in years)
7.3

 
4.9

Weighted-average coupon
4.4
%
 
4.8
%


The above sensitivities are hypothetical and should be used with caution. As the amounts indicate, changes in fair value based on variations in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in this table, the effect of a variation in a particular assumption on the fair value of the retained interest is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which might magnify or counteract the sensitivities. Additionally, the sensitivities above do not include the effect of hedging activity undertaken by the Company to offset changes in the fair value of MSRs. See Note 11, “Derivative Financial Instruments,” for further information regarding these hedging activities.
Certain Transfers of Financial Assets and Variable Interest Entities
Transfers and Servicing of Financial Assets [Text Block]
NOTE 7 - CERTAIN TRANSFERS OF FINANCIAL ASSETS AND VARIABLE INTEREST ENTITIES
Certain Transfers of Financial Assets and related Variable Interest Entities
As discussed in Note 10, "Certain Transfers of Financial Assets and Variable Interest Entities," to the Consolidated Financial Statements in the Company's 2012 Annual Report on Form 10-K, the Company has transferred loans and securities in sale or securitization transactions in which the Company has, or had, continuing involvement. Except as specifically noted herein, the Company is not required to provide additional financial support to any of the entities that are VIEs described below, nor has the Company provided any support it was not otherwise obligated to provide. Further, during the nine months ended September 30, 2013, the Company evaluated whether any of its previous conclusions regarding whether it is the primary beneficiary of the VIEs described below should be changed based upon events occurring during the period. Other than certain affordable housing partnership interest and properties that were sold which resulted in the deconsolidation of $5 million in assets during the third quarter, these evaluations did not result in changes to the previous consolidation conclusions.
When evaluating transfers and other transactions with VIEs for consolidation, the Company first determines if it has a VI in the VIE. A VI is typically in the form of securities representing retained interests in the transferred assets and, at times, servicing rights and collateral manager fees. If the Company has a VI in the entity, it then evaluates whether or not it has both (1) the power to direct the activities that most significantly impact the economic performance of the VIE and (2) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE to determine if the Company should consolidate the VIE.
Below is a summary of transfers of financial assets to VIEs for which the Company has retained some level of continuing involvement and supplements Note 10, "Certain Transfers of Financial Assets and Variable Interest Entities," to the Consolidated Financial Statements in the Company's 2012 Annual Report on Form 10-K.
Residential Mortgage Loans
The Company typically transfers first lien residential mortgage loans in conjunction with Ginnie Mae, Fannie Mae, and Freddie Mac securitization transactions whereby the loans are exchanged for cash or securities that are readily redeemable for cash proceeds and servicing rights. The Company sold residential mortgage loans to these entities, including servicing rights, which resulted in a pre-tax loss of $169 million for the three months ended September 30, 2013, and pre-tax gains of $306 million for the three months ended September 30, 2012, and pre-tax gains of $112 million and $765 million for the nine months ended September 30, 2013 and 2012, respectively. These gains/losses are included within mortgage production related (loss)/income in the Consolidated Statements of Income. These gains/losses include the change in value of the loans as a result of changes in interest rates from the time the related IRLCs were issued to the borrowers but do not include the results of hedging activities initiated by the Company to mitigate this market risk. See Note 11, “Derivative Financial Instruments,” for further discussion of the Company’s hedging activities. As seller, the Company has made certain representations and warranties with respect to the originally transferred loans, including those transferred under Ginnie Mae, Fannie Mae, and Freddie Mac programs, and those representations and warranties are discussed in Note 12, “Reinsurance Arrangements and Guarantees.”
In a limited number of securitizations, the Company has received securities representing retained interests in the transferred loans in addition to cash and servicing rights in exchange for the transferred loans. The received securities are carried at fair value as either trading assets or securities AFS. At September 30, 2013 and December 31, 2012, the fair value of securities received totaled $77 million and $98 million, respectively, and were valued using a third party pricing service.
The Company evaluated these securitization transactions for consolidation under the VIE consolidation guidance. As servicer of the underlying loans, the Company is generally deemed to have power over the securitization. However, if a single party, such as the issuer or the master servicer, effectively controls the servicing activities or has the unilateral ability to terminate the Company as servicer without cause, then that party is deemed to have power over the securitization. In almost all of its securitization transactions, the Company does not have power over the VIE as a result of these rights held by the master servicer. In certain transactions, the Company does have power as the servicer; however, the Company does not also have an obligation to absorb losses or the right to receive benefits that could potentially be significant to the securitization. The absorption of losses and the receipt of benefits would generally manifest itself through the retention of senior or subordinated interests. Total assets at September 30, 2013 and December 31, 2012, of the unconsolidated trusts in which the Company has a VI are $368 million and $445 million, respectively.
The Company’s maximum exposure to loss related to the unconsolidated VIEs in which it holds a VI is comprised of the loss of value of any interests it retains and any repurchase obligations it incurs as a result of a breach of its representations and warranties, which is discussed in Note 12, “Reinsurance Arrangements and Guarantees.”
Commercial and Corporate Loans
The Company has involvement with CLO entities that own commercial leveraged loans and bonds, certain of which were transferred by the Company to the CLOs. In addition to retaining certain securities issued by the CLOs, the Company also acts as collateral manager for these CLOs. The securities retained by the Company and the fees received as collateral manager represent a VI in the CLOs, which are considered to be VIEs. The Company has determined that it is the primary beneficiary of and, thus, has consolidated one of these CLOs as it has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses and the right to receive benefits from the entity that could potentially be significant to the CLO. The Company's involvement with the CLO includes receiving fees for its duties as collateral manager, including eligibility for performance fees, as well as ownership in one of the senior interests in the CLO and certain preference shares of the CLO. Substantially all of the assets and liabilities of the CLO are loans and issued debt, respectively. The loans are classified within LHFS at fair value and the debt is included within long-term debt at fair value on the Company’s Consolidated Balance Sheets. See Note 13, “Fair Value Election and Measurement,” for a discussion of the Company’s methodologies for estimating the fair values of these financial instruments. At September 30, 2013, the Company’s Consolidated Balance Sheets reflected $314 million of loans held by the CLO and $284 million of debt issued by the CLO. At December 31, 2012, the Company’s Consolidated Balance Sheets reflected $319 million of loans held by the CLO and $286 million of debt issued by the CLO. Although the Company consolidates the CLO, its creditors have no recourse to the general credit of the Company, as the liabilities of the CLO are paid only to the extent of available cash flows from the CLO’s assets.
For the remaining CLOs, which are also considered to be VIEs, the Company has determined that it is not the primary beneficiary as it does not have an obligation to absorb losses or the right to receive benefits from the entities that could potentially be significant to the VIE. The Company's preference share exposure was valued at $3 million at September 30, 2013 and December 31, 2012. The Company’s only remaining involvement with these VIEs is through its collateral manager role. The Company receives fees for managing the assets of these vehicles; these fees are considered adequate compensation and are commensurate with the level of effort required to provide such services. The fees received by the Company from these entities are recorded as trust and investment management income in the Consolidated Statements of Income. Senior fees earned by the Company are generally not considered at risk; however, subordinate fees earned by the Company are subject to the availability of cash flows and to the priority of payments. At both September 30, 2013 and December 31, 2012, these VIEs had $1.8 billion of estimated assets and $1.7 billion of estimated liabilities.
Student Loans
During 2006, the Company completed a securitization of government-guaranteed student loans through a transfer of loans to a securitization SPE, which previously qualified as a QSPE, and retained the related residual interest in the SPE. The Company concluded that this securitization of government-guaranteed student loans (the “Student Loan entity”) should be consolidated. At September 30, 2013 and December 31, 2012, the Company’s Consolidated Balance Sheets reflected $354 million and $384 million, respectively, of assets held by the Student Loan entity and $350 million and $380 million, respectively, of debt issued by the Student Loan entity.
Payments from the assets in the SPE must first be used to settle the obligations of the SPE, with any remaining payments remitted to the Company as the owner of the residual interest. To the extent that losses occur on the SPE’s assets, the SPE has recourse to the federal government as the guarantor up to a maximum guarantee amount of 97%. Losses in excess of the government guarantee reduce the amount of available cash payable to the Company as the owner of the residual interest. To the extent that losses result from a breach of the master servicer’s servicing responsibilities, the SPE has recourse to the Company; the SPE may require the Company to repurchase the loan from the SPE at par value. If the breach was caused by the subservicer, the Company has recourse to seek reimbursement from the subservicer up to the guaranteed amount. The Company’s maximum exposure to loss related to the SPE is represented by the potential losses resulting from a breach of servicing responsibilities. To date, all loss claims filed with the guarantor that have been denied due to servicing errors have either been cured or reimbursement has been provided to the Company by the subservicer.
CDO Securities
The Company has transferred bank trust preferred securities in securitization transactions. The Company's maximum exposure to loss at September 30, 2013 and December 31, 2012, includes current senior interests held in trading securities, which have fair values of $62 million and $52 million, respectively.
As further discussed in Note 13, "Fair Value Election and Measurement," the Company valued these interests by constructing a pricing matrix of values based on a range of overcollateralization levels that are derived from discussions with the dealer community along with limited trade data. The primary inputs and assumptions considered by the Company in valuing these retained interests were overcollateralization levels (impacted by credit losses) and the discount margin over LIBOR. While all the underlying collateral is currently eligible for repayment by the obligor, given the nature of the collateral and the current repricing environment, the Company assumed no prepayment would occur before the final maturity, which is approximately 21 years on a weighted average basis. The expected discount margin over LIBOR ranged from 5.0% to 6.5% at September 30, 2013 based on discussion with the dealer community with limited trade data adjusted for specific deal factors. At September 30, 2013, a 10% and 20% adverse change in the assumed market yield results in declines of approximately $6 million and $10 million, respectively, in the fair value of these securities. In evaluating the impact of credit losses, consideration was given to the underlying collateral of the VIEs, which is highly concentrated, and as a result, the default or deferral of certain large exposures adversely impacts the value of the interests. The Company estimates that if each of the VIEs in which the Company holds retained positions experienced three additional large deferrals or defaults, it should not have a significant impact on the fair value of the retained securities.
At September 30, 2013 and December 31, 2012, the total assets of the trust preferred CDO entities in which the Company has remaining exposure to loss were $1.1 billion and $1.2 billion, respectively. The Company determined that it was not the primary beneficiary of any of these VIEs as the Company lacks the power to direct the significant activities of any of the VIEs. No events occurred during the nine months ended September 30, 2013 that changed the Company’s sale accounting conclusion.
The following tables present certain information related to the Company’s asset transfers in which it has continuing economic involvement.
 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
2013
 
2012
 
2013
 
2012
Cash flows on interests held1:
 
 
 
 
 
 
 
  Residential Mortgage Loans2

$8

 

$6

 

$24

 

$21

  Commercial and Corporate Loans
—

 
1

 
1

 
1

  CDO Securities
—

 
1

 
1

 
1

    Total cash flows on interests held

$8

 

$8

 

$26

 

$23

Servicing or management fees1:
 
 
 
 
 
 
 
  Residential Mortgage Loans2

$1

 

$1

 

$2

 

$2

  Commercial and Corporate Loans
2

 
2

 
7

 
7

    Total servicing or management fees

$3

 

$3

 

$9

 

$9


1 The transfer activity is related to unconsolidated VIEs.
2 Does not include GSE mortgage loan transfers

Portfolio balances and delinquency balances based on accruing loans 90 days or more past due and all nonaccrual loans at September 30, 2013 and December 31, 2012, and net charge-offs related to managed portfolio loans (both those that are owned or consolidated by the Company and those that have been transferred) for the three and nine months ended September 30, 2013 and 2012 are as follows:
 
Portfolio Balance1
 
Past Due2
 
Net Charge-offs
 
September 30, 2013
 
December 31, 2012
 
September 30, 2013
 
December 31, 2012
 
Three Months Ended September 30
 
Nine Months Ended September 30
 
(Dollars in millions)
2013
 
2012
 
2013
 
2012
Type of loan:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial

$61,435

 

$58,888

 

$298

 

$320

 

$39

 

$71

 

$128

 

$235

Residential
43,041

 
43,199

 
1,385

 
1,941

 
88

 
415

 
363

 
980

Consumer
19,864

 
19,383

 
517

 
68

 
19

 
25

 
60

 
68

Total loan portfolio
124,340

 
121,470

 
2,200

 
2,329

 
146

 
511

 
551

 
1,283

Managed securitized loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
1,756

 
1,767

 
16

 
23

 
—

 
—

 
—

 
—

Residential
102,737

 
104,877

 
1,411

3 
2,186

3 
5

 
7

 
19

 
23

Total managed loans

$228,833

 

$228,114

 

$3,627

 

$4,538

 

$151

 

$518

 

$570

 

$1,306


1Excludes $2.5 billion and $3.4 billion of LHFS at September 30, 2013 and December 31, 2012, respectively.
2Excludes $59 million and $38 million of past due LHFS at September 30, 2013 and December 31, 2012, respectively.
3Excludes loans that have completed the foreclosure or short sale process (i.e., involuntary prepayments).

Other Variable Interest Entities
The Company also has involvement with VIEs from business activities as further discussed in Note 10, "Certain Transfers of Financial Assets and Variable Interest Entities," to the Consolidated Financial Statements in the Company's 2012 Annual Report on Form 10-K.
Total Return Swaps
The Company has involvement with various VIEs related to its TRS business. At September 30, 2013 and December 31, 2012, the Company had $1.8 billion and $1.9 billion, respectively, in senior financing outstanding to VIEs, which was classified within trading assets on the Consolidated Balance Sheets and carried at fair value. These VIEs had entered into TRS contracts with the Company with outstanding notional amounts of $1.8 billion and $1.9 billion at September 30, 2013 and December 31, 2012, respectively, and the Company had entered into mirror TRS contracts with third parties with the same outstanding notional amounts. At September 30, 2013, the fair values of these TRS assets and liabilities were $36 million and $32 million, respectively, and at December 31, 2012, the fair values of these TRS assets and liabilities were $51 million and $46 million, respectively, reflecting the pass-through nature of these structures. The notional amounts of the TRS contracts with the VIEs represent the Company’s maximum exposure to loss, although such exposure to loss has been mitigated via the TRS contracts with third parties. For additional information on the Company’s TRS with these VIEs, see Note 11, “Derivative Financial Instruments.”
Community Development Investments
As part of its community reinvestment initiatives, the Company invests primarily within its footprint in multi-family affordable housing developments and other community development entities as a limited and/or general partner and/or a debt provider. The Company receives tax credits for various investments. The Company has determined that the related partnerships are VIEs. For partnerships where the Company operates strictly as the general partner, the Company consolidates these partnerships on its Consolidated Balance Sheets. As the general partner, the Company typically guarantees the tax credits due to the limited partner and is responsible for funding construction and operating deficits. At September 30, 2013 and December 31, 2012, total assets, which consist primarily of fixed assets and cash attributable to the consolidated entities, were $3 million, and total liabilities, excluding intercompany liabilities, were $1 million. Security deposits from the tenants are recorded as liabilities on the Company’s Consolidated Balance Sheets. The Company maintains separate cash accounts to fund these liabilities and these assets are considered restricted. The tenant liabilities and corresponding restricted cash assets were not material at September 30, 2013 and December 31, 2012. While the obligations of the general partner are generally non-recourse to the Company, as the general partner, the Company may from time to time step in when needed to fund deficits. During the three and nine months ended September 30, 2013 and 2012, the Company did not provide any significant amount of funding as the general partner or to cover any deficits the partnerships may have generated.
For other partnerships, the Company acts only in a limited partnership capacity. The Company has determined that it is not the primary beneficiary of these partnerships and accounts for its interests in accordance with the accounting guidance for investments in affordable housing projects. The general partner or an affiliate of the general partner provides guarantees to the limited partner, which protects the Company from losses attributable to operating deficits, construction deficits, and tax credit allocation deficits. Partnership assets of $1.3 billion and $1.2 billion in these partnerships were not included in the Consolidated Balance Sheets at September 30, 2013 and December 31, 2012, respectively. The limited partner interests had carrying values of $237 million and $186 million at September 30, 2013 and December 31, 2012, respectively, and are recorded in other assets in the Company’s Consolidated Balance Sheets. The Company’s maximum exposure to loss for these investments totaled $595 million and $505 million at September 30, 2013 and December 31, 2012, respectively. The Company’s maximum exposure to loss would be borne by the loss of the equity investments along with $278 million and $236 million of loans, interest-rate swaps, or letters of credit issued by the Company to the entities at September 30, 2013 and December 31, 2012, respectively. The difference between the maximum exposure to loss and the investment and loan balances is primarily attributable to the unfunded equity commitments. Unfunded equity commitments are amounts that the Company has committed to the entities upon the entities meeting certain conditions. If these conditions are met, the Company will invest these additional amounts in the entities.
Additionally, the Company owns noncontrolling interests in funds whose purpose is to invest in community developments. At September 30, 2013 and December 31, 2012, the Company's investment in these funds totaled $136 million and $63 million, respectively, and the Company's maximum exposure to loss on its equity investments, which is comprised of its investments in the funds plus any additional unfunded equity commitments, was $225 million and $110 million, respectively.
When the Company owns both the limited partner and general partner interests or acts as the indemnifying party, the Company consolidates the entities. At September 30, 2013 and December 31, 2012, total assets, which consist primarily of fixed assets and cash, attributable to the consolidated non-VIE partnerships were $234 million and $239 million, respectively, and total liabilities, excluding intercompany liabilities, primarily representing third party borrowings, were $91 million and $100 million, respectively.
During 2012, the Company decided to sell certain affordable housing properties, and accordingly, recorded an impairment charge to adjust the carrying values to their estimated net realizable values. Certain affordable housing properties were sold during the third quarter of 2013. The gain recognized upon sale during the third quarter of 2013 was immaterial. At September 30, 2013, market indicators remain consistent with the carrying values of the remaining properties to be sold and marketing efforts continue with an expected disposition in the fourth quarter of 2013.
Registered and Unregistered Funds Advised by RidgeWorth
RidgeWorth, a registered investment advisor and majority owned subsidiary of the Company, serves as the investment advisor for various private placement, common and collective funds, and registered mutual funds (collectively the “Funds”). The Company evaluates these Funds to determine if the Funds are VIEs. In February 2010, the FASB issued guidance that defers the application of the existing VIE consolidation guidance for investment funds meeting certain criteria. All of the registered and unregistered Funds advised by RidgeWorth meet the scope exception criteria, thus, are not evaluated for consolidation under the guidance. Accordingly, the Company continues to apply the consolidation guidance in effect prior to the issuance of the existing guidance to interests in funds that qualify for the deferral.
The Company has concluded that some of the Funds are VIEs. However, the Company has determined that it is not the primary beneficiary of these funds as the Company does not absorb a majority of the expected losses nor expected returns of the funds. The Company’s exposure to loss is limited to the investment advisor and other administrative fees it earns and if applicable, any equity investments. The total unconsolidated assets of these funds at September 30, 2013 and December 31, 2012, were $273 million and $372 million, respectively.
Net Income/(Loss) Per Common Share
Net Income/(Loss) Per Share
NOTE 8 – NET INCOME PER COMMON SHARE
Equivalent shares of 20 million and 24 million related to common stock options and common stock warrants outstanding at September 30, 2013 and 2012, respectively, were excluded from the computations of diluted income per average common share because they would have been anti-dilutive.
Reconciliations of net income to net income available to common shareholders and the difference between average basic common shares outstanding and average diluted common shares outstanding are included below.
 
 
Three Months Ended September 30
 
Nine Months Ended September 30
(In millions, except per share data)
 
2013
 
2012
 
2013
 
2012
Net income
 

$189

 

$1,077

 

$918

 

$1,602

Preferred dividends
 
(9
)
 
(2
)
 
(28
)
 
(8
)
Dividends and undistributed earnings allocated to unvested shares
 
(1
)
 
(9
)
 
(6
)
 
(13
)
Net income available to common shareholders
 

$179

 

$1,066

 

$884

 

$1,581

Average basic common shares
 
534

 
535

 
535

 
534

Effect of dilutive securities:
 
 
 
 
 
 
 
 
Stock options
 
1

 
1

 
1

 
1

Restricted stock
 
4

 
3

 
3

 
3

Average diluted common shares
 
539

 
539

 
539

 
538

Net income per average common share - diluted
 

$0.33

 

$1.98

 

$1.64

 

$2.94

Net income per average common share - basic
 

$0.33

 

$1.99

 

$1.65

 

$2.96

Income Taxes
Income Taxes
NOTE 9 - INCOME TAXES
The provision for income taxes was a benefit of $146 million and an expense of $551 million for the three months ended September 30, 2013 and 2012, respectively, resulting in an effective tax rate during the three months ended September 30, 2013, that was not meaningful when calculated compared to an effective tax rate of 34% during the three months ended September 30, 2012. For the nine months ended September 30, 2013 and 2012, the provision for income taxes was an expense of $151 million and $710 million, respectively, representing effective tax rates of 14% and 31%, respectively. The Company calculated the provision for income taxes for the three and nine months ended September 30, 2013, by applying the estimated annual effective tax rate to year-to-date pre-tax income and adjusting for discrete items that occurred during the period. For the three and nine months ended September 30, 2012, the provision for income taxes was calculated discretely based on actual year-to-date results.
The Company realized a gross tax benefit of approximately $343 million related to the taxable reorganization of certain subsidiaries in the third quarter of 2013. This tax benefit and any related liability for UTBs were recorded as discrete items in the third quarter provision for income taxes.
At September 30, 2013 and December 31, 2012, the Company had a liability related to federal and state UTBs, excluding interest and penalties, of $338 million and $137 million, respectively. The increase in the liability relates to current year tax positions. The amount of UTBs that, if recognized, would affect the Company’s effective tax rate was $287 million at September 30, 2013.
At September 30, 2013 and December 31, 2012, the Company had a valuation allowance recorded against its state carryforwards and certain state DTAs of $82 million and $56 million, respectively. The increase in the valuation allowance was primarily due to an increase in STM’s valuation allowance related to its state NOLs.
Employee Benefit Plans
Employee Benefit Plans
NOTE 10 - EMPLOYEE BENEFIT PLANS
The Company sponsors various short-term incentive plans and LTIs for eligible employees, which may be delivered through various incentive programs, including stock options, RSUs, restricted stock, and LTI cash. AIP is the Company's short-term cash incentive plan for key employees that provides for potential annual cash awards based on the Company's performance and/or the achievement of business unit and individual performance objectives. Awards under the LTI cash plan generally cliff vest over a period of three years from the date of the award and are paid in cash. All incentive awards are subject to clawback provisions. Compensation expense for the AIP and LTI cash plans was $30 million and $39 million for the three months ended September 30, 2013 and 2012, respectively and $108 million and $116 million for the nine months ended September 30, 2013 and 2012, respectively.

Stock-Based Compensation
The Company provides stock-based awards through the 2009 Stock Plan (as amended and restated effective January 1, 2011) under which the Compensation Committee of the Board of Directors has the authority to grant stock options, restricted stock, and RSUs to key employees of the Company. Some awards may have performance or other conditions, such as vesting tied to the Company's total shareholder return relative to a peer group or vesting tied to the achievement of an absolute financial performance target. Under the 2009 Stock Plan, approximately 21 million shares of common stock are authorized and reserved for issuance, of which no more than 17 million shares may be issued as restricted stock or stock units. At September 30, 2013, 17 million shares were available for grant, including 9 million shares available to be issued as restricted stock.
Stock options are granted at an exercise price that is no less than the fair market value of a share of SunTrust common stock on the grant date and may be either tax-qualified incentive stock options or non-qualified stock options. Stock options typically vest pro-rata over three years and generally have a maximum contractual life of ten years. Upon exercise, shares are generally issued from treasury stock. Upon exercise, the weighted average fair value of options granted during the first nine months of 2013 and 2012 were $7.37 and $7.83 per share, respectively. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model based on the following assumptions for the nine months ended September 30:
 
2013
 
2012
Dividend yield
1.28
%
 
0.91
%
Expected stock price volatility
30.98

 
39.88

Risk-free interest rate (weighted average)
1.02

 
1.07

Expected life of options
6 years

 
6 years


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock-based compensation expense recognized in noninterest expense was as follows:
 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
2013
 
2012
 
2013
 
2012
Stock-based compensation expense:
 
 
 
 
 
 
 
Stock options

$1

 

$2

 

$5

 

$9

Restricted stock
9

 
8

 
24

 
22

RSUs
2

 
6

 
15

 
24

Total stock-based compensation expense

$12

 

$16

 

$44

 

$55



The recognized stock-based compensation tax benefit was $5 million and $6 million for the three months ended September 30, 2013 and 2012, respectively, and $17 million and $21 million for the nine months ended September 30, 2013 and 2012, respectively.

Retirement Plans
SunTrust did not contribute to either of its noncontributory qualified retirement plans ("Retirement Benefit Plans") during the first nine months of 2013. The expected long-term rate of return on plan assets for the Retirement Benefit Plans is 7% for 2013.
Anticipated employer contributions/benefit payments for 2013 are $8 million for the SERP. During the three and nine months ended September 30, 2013, the actual contributions/benefit payments were $3 million and $7 million, respectively.
SunTrust contributed less than $1 million to the Postretirement Welfare Plan during the three and nine months ended September 30, 2013. Additionally, SunTrust expects to receive a Medicare Part D Subsidy reimbursement for 2013 in the amount of $3 million. The expected pre-tax long-term rate of return on plan assets for the Postretirement Welfare Plan is 5% for 2013.

Components of net periodic benefit for the three and nine months ended September 30, were as follows:
 
Three Months Ended September 30
 
2013
 
2012
(Dollars in millions)
Pension Benefits
 
Other Postretirement Benefits
 
Pension Benefits
 
Other Postretirement Benefits
Interest cost

$28

 

$1

 

$30

 

$2

Expected return on plan assets
(46
)
 
(1
)
 
(43
)
 
(2
)
Recognized net actuarial loss
6

 
—

 
6

 
—

Settlement loss
—

 
—

 
2

1 
—

Net periodic benefit

($12
)
 

$—

 

($5
)
 

$—

    
 
Nine Months Ended September 30
 
2013
 
2012
(Dollars in millions)
Pension Benefits
 
Other Postretirement Benefits
 
Pension Benefits
 
Other Postretirement Benefits
Interest cost

$84

 

$4

 

$90

 

$5

Expected return on plan assets
(139
)
 
(4
)
 
(129
)
 
(5
)
Recognized net actuarial loss
19

 
—

 
18

 
—

Settlement loss
—

 
—

 
2

1 
—

Net periodic benefit

($36
)
 

$—

 

($19
)
 

$—

Derivative Financial Instruments
Derivative Financial Instruments
NOTE 11 - DERIVATIVE FINANCIAL INSTRUMENTS
The Company enters into various derivative financial instruments, both in a dealer capacity to facilitate client transactions and as an end user as a risk management tool. ALCO monitors all derivative activities. When derivatives have been entered into with clients, the Company generally manages the risk associated with these derivatives within the framework of its VAR approach that monitors total daily exposure and seeks to manage the exposure on an overall basis. Derivatives are also used as a risk management tool to hedge the Company’s balance sheet exposure to changes in identified cash flow and fair value risks, either economically or in accordance with hedge accounting provisions. The Company’s Corporate Treasury function is responsible for employing the various hedge accounting strategies to manage these objectives. Additionally, as a normal part of its operations, the Company enters into IRLCs on mortgage loans that are accounted for as freestanding derivatives and has certain contracts containing embedded derivatives that are carried, in their entirety, at fair value. All freestanding derivatives and any embedded derivatives that the Company bifurcates from the host contracts are carried at fair value in the Consolidated Balance Sheets in trading assets, other assets, trading liabilities, or other liabilities. The associated gains and losses are either recognized in AOCI, net of tax, or within the Consolidated Statements of Income, depending upon the use and designation of the derivatives.
Credit and Market Risk Associated with Derivatives
Derivatives expose the Company to credit risk. The Company minimizes the credit risk of derivatives by entering into transactions with counterparties with defined exposure limits based on credit quality that are reviewed periodically by the Company’s Credit Risk Management division. The Company’s derivatives may also be governed by an ISDA or other master agreement, and depending on the nature of the derivative, bilateral collateral agreements are typically in place as well. When the Company has more than one outstanding derivative transaction with a single counterparty and there exists a legal right of offset with that counterparty, the Company considers its exposure to the counterparty to be the net market value of its derivative positions with that counterparty if an asset, adjusted for held collateral. At September 30, 2013, net derivative asset positions were $1.2 billion, representing the $1.8 billion of derivative gains adjusted for collateral of $0.6 billion that the Company held in relation to these gain positions. At December 31, 2012, net derivative asset positions were $1.8 billion, representing $2.6 billion of derivative gains, adjusted for collateral of $0.8 billion that the Company held in relation to these gain positions.
Derivatives also expose the Company to market risk. Market risk is the adverse effect that a change in market factors, such as interest rates, currency rates, equity prices, or implied volatility, has on the value of a derivative. The Company manages the market risk associated with its derivatives by establishing and monitoring limits on the types and degree of risk that may be undertaken. The Company continually measures this risk associated with its derivatives designated as trading instruments using a VAR methodology.
Derivative instruments are priced with observable market assumptions at a mid-market valuation point, with appropriate valuation adjustments for liquidity and credit risk. For purposes of valuation adjustments to its derivative positions, the Company has evaluated liquidity premiums that may be demanded by market participants, as well as the credit risk of its counterparties and its own credit. The Company has considered factors such as the likelihood of default by itself and its counterparties, its net exposures, and remaining maturities in determining the appropriate fair value adjustments to recognize. Generally, the expected loss of each counterparty is estimated using the Company’s internal risk rating system. The risk rating system utilizes counterparty-specific PD and LGD estimates to derive the expected loss. For counterparties that are rated by national rating agencies, those ratings are also considered in estimating the credit risk. Additionally, counterparty exposure is evaluated by offsetting positions that are subject to master netting arrangements, as well as by considering the amount of marketable collateral securing the position. All counterparties and defined exposure limits are explicitly approved. Counterparties are regularly reviewed and appropriate business action is taken to adjust the exposure to certain counterparties, as necessary. This approach is also used by the Company to estimate its own credit risk on derivative liability positions. The Company adjusted the net fair value of its derivative contracts for estimates of net counterparty credit risk by approximately $18 million and $29 million at September 30, 2013 and December 31, 2012, respectively.
The majority of the Company’s derivatives contain contingencies that relate to the creditworthiness of the Bank. These contingencies, which are contained in industry standard master netting agreements, may be considered events of default. Should the Bank be in default under any of these provisions, the Bank’s counterparties would be permitted to close-out net at amounts that would approximate the then-fair values of the derivatives resulting in a single sum due by one party to the other. The counterparties would have the right to apply any collateral posted by the Bank against any net amount owed by the Bank. Additionally, certain of the Company’s derivative liability positions, totaling $1.0 billion in fair value at September 30, 2013 and $1.3 billion at December 31, 2012, contain provisions conditioned on downgrades of the Bank’s credit rating. These provisions, if triggered, would either give rise to an ATE that permits the counterparties to close-out net and apply collateral or, where a CSA is present, require the Bank to post additional collateral. At September 30, 2013, the Bank carried senior long-term debt ratings of A3/BBB+ from three of the major ratings agencies. At the current rating level, ATEs have been triggered for approximately $4 million in fair value liabilities as of September 30, 2013. For illustrative purposes, if the Bank were downgraded to BB+, ATEs would be triggered in derivative liability contracts that had a total fair value of $6 million at September 30, 2013; ATEs do not exist at lower ratings levels. At September 30, 2013, $1.0 billion in fair value of derivative liabilities were subject to CSAs, against which the Bank has posted $934 million in collateral, primarily in the form of cash. If requested by the counterparty pursuant to the terms of the CSA, the Bank would be required to post estimated additional collateral against these contracts at September 30, 2013, of $10 million if the Bank were downgraded to Baa3/BBB-, and any further downgrades to Ba1/BB+ or below do not contain predetermined collateral posting levels.

Notional and Fair Value of Derivative Positions
The following tables present the Company’s derivative positions at September 30, 2013 and December 31, 2012. The notional amounts in the tables are presented on a gross basis and have been classified within Asset Derivatives or Liability Derivatives based on the estimated fair value of the individual contract at September 30, 2013 and December 31, 2012. Gross positive and gross negative fair value amounts associated with respective notional amounts are presented without consideration of any netting agreements, including collateral arrangements. For contracts constituting a combination of options that contain a written option and a purchased option (such as a collar), the notional amount of each option is presented separately, with the purchased notional amount generally being presented as an Asset Derivative and the written notional amount being presented as a Liability Derivative. For contracts that contain a combination of options, the fair value is generally presented as a single value with the purchased notional amount if the combined fair value is positive, and with the written notional amount, if the combined fair value is negative.
 
September 30, 2013
 
Asset Derivatives
 
Liability Derivatives
(Dollars in millions)
Balance Sheet
Classification
 
Notional
Amounts
 
Fair
Value
 
Balance Sheet
Classification
 
Notional
Amounts
 
Fair
Value
Derivatives designated in cash flow hedging relationships 1
 
 
 
 
 
 
 
 
 
 
Interest rate contracts hedging
Floating rate loans
Trading assets
 

$17,250

  

$563

 
Trading liabilities
 

$—

  

$—

Derivatives designated in fair value hedging relationships 2
 
 
 
 
 
 
 
 
 
 
Interest rate contracts covering:
Fixed rate debt
Trading assets
 
2,000

 
61

 
Trading liabilities
 
900

 
10

Derivatives not designated as hedging instruments 3
 
 
 
 
 
 
 
 
 
 
Interest rate contracts covering:
 
 
 
 
 
 
 
 
 
 
 
Fixed rate debt
Trading assets
 
—

  
—

 
Trading liabilities
 
60

  
8

MSRs
Other assets
 
3,240

  
51

 
Other liabilities
 
8,916

  
79

LHFS, IRLCs 4
Other assets
 
2,397

 
23

 
Other liabilities
 
5,525

 
78

Trading activity 5
Trading assets
 
69,235

 
3,285

 
Trading liabilities
 
72,926

 
3,102

Foreign exchange rate contracts covering:
 
 
 
 
 
 
 
 
 
 
Commercial loans
Trading assets
 
—

  
—

 
Trading liabilities
 
34

  
—

Trading activity
Trading assets
 
2,589

  
63

 
Trading liabilities
 
2,537

  
61

Credit contracts covering:
 
 
 
 
 
 
 
 
 
 
 
Loans
Other assets
 
—

  
—

 
Other liabilities
 
490

  
6

Trading activity 6
Trading assets
 
1,937

 
39

 
Trading liabilities
 
1,941

 
33

Equity contracts - Trading activity 5
Trading assets
 
18,722

 
2,079

 
Trading liabilities
 
24,010

 
2,242

Other contracts:
 
 
 
 
 
 
 
 
 
 
 
IRLCs and other 7
Other assets
 
2,156

  
47

 
Other liabilities
 
212

 
3

Commodities
Trading assets
 
227

  
19

 
Trading liabilities
 
221

  
19

Total
 
 
100,503

  
5,606

 
 
 
116,872

  
5,631

Total derivatives
 
 

$119,753

  

$6,230

 
 
 

$117,772

  

$5,641

Total gross derivatives, before netting
 
 
 

$6,230

 
 
 
 
 

$5,641

Less: Legally enforceable master netting agreements
 
 
 
(4,180
)
 
 
 
 
 
(4,180
)
Less: Cash collateral received/paid
 
 
 
(521
)
 
 
 
 
 
(966
)
Total derivatives, after netting 8
 
 
 

$1,529

 
 
 
 
 

$495

1 See “Cash Flow Hedges” in this Note for further discussion.
2 See “Fair Value Hedges” in this Note for further discussion.
3 See “Economic Hedging and Trading Activities” in this Note for further discussion.
4 Amount includes $0.9 billion of notional amounts related to interest rate futures. These futures contracts settle in cash daily, one day in arrears. The derivative asset or liability associated with the one day lag is included in the fair value column of this table.
5 Amounts include $16.1 billion and $0.2 billion of notional related to interest rate futures and equity futures, respectively. These futures contracts settle in cash daily, one day in arrears. The derivative assets/liabilities associated with the one day lag are included in the fair value column of this table.
6 Asset and liability amounts include $4 million and $3 million, respectively, of notional from purchased and written credit risk participation agreements, respectively, whose notional is calculated as the notional of the derivative participated adjusted by the relevant RWA conversion factor.
7 Includes a notional amount that is based on the number of Visa Class B shares, 3.2 million, the conversion ratio from Class B shares to Class A shares, and the Class A share price at the derivative inception date of May 28, 2009. This derivative was established upon the sale of Class B shares in the second quarter of 2009 as discussed in Note 12, “Reinsurance Arrangements and Guarantees.” The fair value of the derivative liability, which relates to a notional amount of $134 million, is immaterial and is recognized in other liabilities in the Consolidated Balance Sheets.
8 Amounts represent total derivatives after offsetting cash collateral received from and paid to the same derivative counterparties and impact of netting derivative assets and derivative liabilities when a legally enforceable master netting agreement or similar agreement exists. In some situations, trading derivatives are offset with derivatives used for risk management purposes that are recorded in other assets or other liabilities. As a result, the Company may reclass balances between trading assets or trading liabilities and other assets or other liabilities based on the predominant account.


 
December 31, 2012
 
Asset Derivatives
 
Liability Derivatives
(Dollars in millions)
Balance Sheet
Classification
 
Notional
Amounts
 
Fair
Value
 
Balance Sheet
Classification
 
Notional
Amounts
 
Fair
Value
Derivatives designated in cash flow hedging relationships 1
 
 
 
 
 
 
 
 
 
 
Interest rate contracts hedging:
Floating rate loans
Trading assets
 

$17,350

  

$771

 
Trading liabilities
 

$—

 

$—

Derivatives designated in fair value hedging relationships 2
Interest rate contracts covering:
 
 
 
 
 
 
 
 
 
 
 
Fixed rate debt
Trading assets
 
1,000

 
61

 
Trading liabilities
 
—

 
—

Derivatives not designated as hedging instruments 3
Interest rate contracts covering:
 
 
 
 
 
 
 
 
 
 
 
Fixed rate debt
Trading assets
 
—

  
—

 
Trading liabilities
 
60

  
10

Corporate bonds and loans
 
 


  


 

 


  


MSRs
Other assets
 
6,185

  
150

 
Trading/Other liabilities
 
12,643

  
33

LHFS, IRLCs, LHFI-FV 4
Other assets
 
2,333

 
6

 
Other liabilities
 
7,076

 
15

Trading activity 5
Trading assets
 
81,930

 
6,044

 
Trading liabilities
 
86,037

  
5,777

Foreign exchange rate contracts covering:
 
 
 
 
 
 
 
 
 
 
Foreign-denominated debt and commercial loans
Trading assets
 
—

   
—

 
Trading liabilities
 
34

  
—

Trading activity
Trading assets
 
2,451

   
66

 
Trading liabilities
 
2,326

  
63

Credit contracts covering:
 
 
 
 
 
 
 
 
 
 
 
Loans
Trading/Other assets
 
—

   
—

 
Other liabilities
 
445

  
8

Trading activity 6
Trading assets
 
1,958

 
55

 
Trading liabilities
 
2,081

 
49

Equity contracts - Trading activity 5
Trading assets
 
15,748

 
1,342

 
Trading liabilities
 
22,184

   
1,529

Other contracts:
 
 
 
 
 
 
 
 
 
 
 
IRLCs and other 7
Trading/Other assets
 
6,783

  
132

 
Other liabilities
 
142

 
1

Commodities
Trading assets
 
255

  
29

 
Trading liabilities
 
255

   
29

Total
 
 
117,643

 
7,824

 
 
 
133,283

 
7,514

Total derivatives
 
 

$135,993

 

$8,656

 
 
 

$133,283

 

$7,514

Total gross derivatives, before netting
 
 
 

$8,656

 
 
 
 
 

$7,514

Less: Legally enforceable master netting agreements
 
 
 
(5,843
)
 
 
 
 
 
(5,843
)
Less: Cash collateral received/paid
 
 
 
(730
)
 
 
 
 
 
(1,259
)
Total derivatives, after netting 8
 
 
 

$2,083

 
 
 
 
 

$412

1 See “Cash Flow Hedges” in this Note for further discussion.
2 See “Fair Value Hedges” in this Note for further discussion.
3 See “Economic Hedging and Trading Activities” in this Note for further discussion.
4 Amount includes $1.7 billion of notional amounts related to interest rate futures. These futures contracts settle in cash daily, one day in arrears. The derivative liability associated with the one day lag is included in the fair value column of this table.
5 Amounts include $16.2 billion and $0.8 billion of notional related to interest rate futures and equity futures, respectively. These futures contracts settle in cash daily, one day in arrears. The derivative asset associated with the one day lag is included in the fair value column of this table.
6 Asset and liability amounts each include $3 million of notional from purchased and written interest rate swap risk participation agreements, respectively, whose notional is calculated as the notional of the interest rate swap participated adjusted by the relevant RWA conversion factor.
7 Includes a notional amount that is based on the number of Visa Class B shares, 3.2 million, the conversion ratio from Class B shares to Class A shares, and the Class A share price at the derivative inception date of May 28, 2009. This derivative was established upon the sale of Class B shares in the second quarter of 2009 as discussed in Note 12, “Reinsurance Arrangements and Guarantees.” The fair value of the derivative liability, which relates to a notional amount of $134 million, is immaterial and is recognized in other liabilities in the Consolidated Balance Sheets.
8 Amounts represent total derivatives after offsetting cash collateral received from and paid to the same derivative counterparties and impact of netting derivative assets and derivative liabilities when a legally enforceable master netting agreement or similar agreement exists. In some situations, trading derivatives are offset with derivatives used for risk management purposes that are recorded in other assets or other liabilities. As a result, the Company may reclass balances between trading assets or trading liabilities and other assets or other liabilities based on the predominant account.

Impact of Derivatives on the Consolidated Statements of Income and Shareholders’ Equity
The impacts of derivatives on the Consolidated Statements of Income and the Consolidated Statements of Shareholders’ Equity for the three and nine months ended September 30, 2013 and 2012, are presented below. The impacts are segregated between those derivatives that are designated in hedging relationships and those that are used for economic hedging or trading purposes, with further identification of the underlying risks in the derivatives and the hedged items, where appropriate. The tables do not disclose the financial impact of the activities that these derivative instruments are intended to hedge.  
 
 
 
 
 
 
Three Months Ended September 30, 2013
 
Nine Months Ended September 30, 2013
(Dollars in millions)
Amount of pre-tax gain
recognized in
OCI on Derivatives
(Effective  Portion)
 
Classification of
gain/(loss)
reclassified from    
AOCI into Income
(Effective Portion)
 
Amount of pre-tax gain
reclassified from
AOCI into Income
(Effective Portion)
 
Amount of pre-tax gain/(loss)
recognized in
OCI on Derivatives
(Effective  Portion)
 
Amount of pre-tax gain
reclassified from
AOCI into Income
(Effective Portion)
Derivatives in cash flow hedging relationships:
 
 
 
 
 
 
 
 
Interest rate contracts hedging forecasted debt

$—

 
Interest on long-term debt
 

$—

 

($2
)
 

$—

Interest rate contracts hedging floating rate loans1
60

 
Interest and fees on loans
 
80

 
17

 
246

Total

$60

 
 
 

$80

 

$15

 

$246

1 During the three and nine months ended September 30, 2013, the Company also reclassified $21 million and $69 million, respectively, in pre-tax gains from AOCI into net interest income. These gains related to hedging relationships that have been previously terminated or de-designated and are reclassified into earnings in the same period in which the forecasted transaction occurs.

 
Three Months Ended September 30, 2013
 
Nine Months Ended September 30, 2013
(Dollars in millions)
Amount of gain on Derivatives
recognized in Income
 
Amount of loss on related Hedged Items
recognized in Income
 
Amount of loss recognized in
Income on Hedges
(Ineffective Portion)
 
Amount of loss on Derivatives
recognized in Income
 
Amount of gain on related Hedged Items
recognized in Income
 
Amount of loss recognized in
Income on Hedges
(Ineffective Portion)
Derivatives in fair value hedging relationships:
 
 
 
 
 
 
Interest rate contracts hedging fixed rate debt1

$4

 

($6
)
 

($2
)
 

($19
)
 

$18

 

($1
)
1 Amounts are recognized in trading income in the Consolidated Statements of Income.

 
(Dollars in millions)
Classification of gain/(loss)
recognized in Income on Derivatives
 
Amount of gain/(loss)
recognized in Income
on Derivatives for the
Three Months Ended
September 30, 2013
 
Amount of gain/(loss)
recognized in Income
on Derivatives for the
Nine Months Ended
September 30, 2013
Derivatives not designated as hedging instruments:
 
 
 
 
 
Interest rate contracts covering:
 
 
 
 
 
Fixed rate debt
Trading income
 

($1
)
 

$1

MSRs
Mortgage servicing related income
 
(18
)
 
(232
)
LHFS, IRLCs
Mortgage production related (loss)/income
 
(33
)
 
258

Trading activity
Trading income
 
20

 
46

Foreign exchange rate contracts covering:
 
 
 
 
 
Commercial loans
Trading income
 
2

 
1

Trading activity
Trading income
 
(9
)
 
17

Credit contracts covering:
 
 
 
 
 
Loans
Other income
 
(1
)
 
(3
)
Trading activity
Trading income
 
6

 
16

Equity contracts - trading activity
Trading income
 
1

 
(14
)
Other contracts:
 
 
 
 
 
IRLCs
Mortgage production related (loss)/income
 
47

 
74

Total
 
 

$14

 

$164




 
Three Months Ended September 30, 2012
 
Nine Months Ended September 30, 2012
(Dollars in millions)
Amount of pre-tax gain/(loss)
recognized in
OCI on Derivatives
(Effective  Portion)
 
Classification of gain/(loss)
reclassified from
AOCI into Income
(Effective Portion)
 
Amount of pre-tax gain/(loss)
reclassified from
AOCI into Income
(Effective Portion)
 
Amount of pre-tax gain/(loss)
recognized in
OCI on Derivatives
(Effective Portion)
 
Amount of pre-tax gain/(loss)
reclassified from
AOCI into Income
(Effective Portion)
Derivatives in cash flow hedging relationships:
 
 
 
 
 
 
 
 
Equity contracts hedging Securities AFS 1

($10
)
 
Net securities gains
 

($365
)
 

($171
)
 

($365
)
Interest rate contracts hedging Floating rate loans 2
80

 
Interest and fees on loans
 
84

 
247

 
250

Total

$70

 
 
 

($281
)
 

$76

 

($115
)
1 During both the three and nine months ended September 30, 2012, the Company also recognized $60 million of pre-tax gains directly into net securities gains related to mark-to-market changes of the Coke hedging contracts when the cash flow hedging relationship failed to qualify for hedge accounting.
2 During the three and nine months ended September 30, 2012, the Company also reclassified $34 million and $140 million, respectively, in pre-tax gains from AOCI into net interest income. These gains related to hedging relationships that have been previously terminated or de-designated and are reclassified into earnings in the same period in which the forecasted transaction occurs.

 
Three Months Ended September 30, 2012
 
Nine Months Ended September 30, 2012
(Dollars in millions)
Amount of gain on Derivatives recognized in Income
 
Amount of loss on related Hedged Items
recognized in Income
 
Amount of gain/(loss) recognized in Income on Hedges (Ineffective Portion)
 
Amount of gain on Derivatives recognized in Income
 
Amount of loss on related Hedged Items
recognized in Income
 
Amount of gain/(loss) recognized in Income on Hedges (Ineffective Portion)
Derivatives in fair value hedging relationships1:
 
 
 
 
 
 
   Interest rate contracts hedging Fixed rate debt

$3

 

($3
)
 

$—

 

$10

 

($10
)
 

$—

Interest rate contracts hedging Securities AFS
—

 
—

 
—

 
1

 
(1
)
 
—

Total

$3

 

($3
)
 

$—

 

$11

 

($11
)
 

$—

1 Amounts are recognized in trading income in the Consolidated Statements of Income.

(Dollars in millions)
Classification of gain/(loss)
recognized in Income on Derivatives
 
Amount of gain/(loss)
recognized in Income
on Derivatives for the
Three Months Ended
September 30, 2012
 
Amount of gain/(loss)
recognized in Income
on Derivatives for the
Nine Months Ended September 30, 2012
Derivatives not designated as hedging instruments:
 
 
Interest rate contracts covering:
 
 
 
 
 
Fixed rate debt
Trading income
 

($1
)
 

($2
)
MSRs
Mortgage servicing related income
 
101

 
297

LHFS, IRLCs, LHFI-FV
Mortgage production related (loss)/income
 
(153
)
 
(323
)
Trading activity
Trading income
 
17

 
71

Foreign exchange rate contracts covering:
 
 

 

Commercial loans and foreign-denominated debt
Trading income
 
—

 
129

Trading activity
Trading income
 
(2
)
 
13

Credit contracts covering:
 
 

 

Loans 1
Other income
 
(3
)
 
(6
)
Trading activity
Trading income
 
6

 
18

Equity contracts - trading activity
Trading income
 
(3
)
 
10

Other contracts:
 
 

 

IRLCs
Mortgage production related (loss)/income
 
332

 
774

Total
 
 

$294

 

$981

1For the six months ended June 30, 2012, losses of $3 million were recorded in trading income.
Netting of Derivatives
The Company has various financial assets and financial liabilities that are subject to enforceable master netting agreements or similar agreements. The Company's securities borrowed or purchased under agreements to resell and securities sold under agreements to repurchase that are subject to enforceable master netting agreements or similar agreements are discussed in Note 2, "Federal Funds Sold and Securities Borrowed or Purchased Under Agreements to Resell." The Company enters into ISDA or other legally enforceable industry standard master netting arrangements with derivative counterparties. Under the terms of the master netting arrangements, all transactions between the Company and the counterparty constitute a single business relationship such that in the event of default, the nondefaulting party is entitled to set off claims and apply property held by that party in respect of any transaction against obligations owed. Any payments, deliveries, or other transfers may be applied against each other and netted.
The table below shows total gross derivative assets and liabilities which are adjusted on an aggregate basis, where applicable to take into consideration the effects of legally enforceable master netting agreements, including any cash collateral received or paid, for the net reported amount in the Consolidated Balance Sheets. Also included in the table is financial instrument collateral related to legally enforceable master netting agreements that represents securities collateral received or pledged and customer cash collateral held at third-party custodians. These amounts are not offset on the Consolidated Balance Sheets but are shown as a reduction to total derivative assets and liabilities in the table to derive net derivative assets and liabilities. These amounts are limited to the derivative asset/liability balance, and accordingly, do not include excess collateral received/pledged.
The following tables present the Company's gross derivative financial assets and liabilities at September 30, 2013 and December 31, 2012, and the related impact of enforceable master netting arrangements, where applicable:
(Dollars in millions)
Gross
Amount
 
Amount
Offset
 
Net Amount
Presented in
Consolidated
Balance Sheets
 
Held/Pledged
Financial
Instruments
 
Net
Amount
September 30, 2013
 
 
 
 
 
 
 
 
 
Derivative financial assets:
 
 
 
 
 
 
 
 
 
Derivatives subject to master netting arrangement or similar arrangement

$5,478

 

$4,282

 

$1,196

 

$54

 

$1,142

Derivatives not subject to master netting arrangement or similar arrangement
47

 
—

 
47

 
—

 
47

Exchange traded derivatives
705

 
419

 
286

 
—

 
286

Total derivative financial assets

$6,230

 

$4,701

 

$1,529

1 

$54

 

$1,475

Derivative financial liabilities:
 
 
 
 
 
 
 
 
 
Derivatives subject to master netting arrangement or similar arrangement

$5,051

 

$4,727

 

$324

 

$114

 

$210

Derivatives not subject to master netting arrangement or similar arrangement
169

 
—

 
169

 
—

 
169

Exchange traded derivatives
421

 
419

 
2

 
2

 
—

Total derivative financial liabilities

$5,641

 

$5,146

 

$495

2 

$116

 

$379

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2012
 
 
 
 
 
 
 
 
 
Derivative financial assets:
 
 
 
 
 
 
 
 
 
Derivatives subject to master netting arrangement or similar arrangement

$8,041

 

$6,273

 

$1,768

 

$94

 

$1,674

Derivatives not subject to master netting arrangement or similar arrangement
132

 
—

 
132

 
—

 
132

Exchange traded derivatives
483

 
300

 
183

 
—

 
183

Total derivative financial assets

$8,656

 

$6,573

 

$2,083

1 

$94

 

$1,989

Derivative financial liabilities:
 
 
 
 
 
 
 
 
 
Derivatives subject to master netting arrangement or similar arrangement

$7,051

 

$6,802

 

$249

 

$37

 

$212

Derivatives not subject to master netting arrangement or similar arrangement
163

 
—

 
163

 
—

 
163

Exchange traded derivatives
300

 
300

 
—

 
—

 
—

Total derivative financial liabilities

$7,514

 

$7,102

 

$412

2 

$37

 

$375

1 At September 30, 2013, $1.5 billion, net of $517 million offsetting cash collateral, is recognized in trading assets and $58 million, net of $4 million offsetting cash collateral, is recognized in other assets within the Company's Consolidated Balance Sheets. At December 31, 2012, $1.9 billion, net of $730 million offsetting cash collateral, is recognized in trading assets and $178 million is recognized in other assets within the Company's Consolidated Balance Sheets.
2 At September 30, 2013, $444 million, net of $934 million offsetting cash collateral, is recognized in trading liabilities and $49 million, net of $32 million offsetting cash collateral, is recognized in other liabilities within the Company's Consolidated Balance Sheets. At December 31, 2012, $397 million, net of $1.3 billion offsetting cash collateral, is recognized in trading liabilities and $15 million is recognized in other liabilities within the Company's Consolidated Balance Sheets.
Credit Derivatives
As part of its trading businesses, the Company enters into contracts that are, in form or substance, written guarantees: specifically, CDS, swap participations, and TRS. The Company accounts for these contracts as derivatives and, accordingly, recognizes these contracts at fair value, with changes in fair value recognized in trading income in the Consolidated Statements of Income.
The Company writes CDS, which are agreements under which the Company receives premium payments from its counterparty for protection against an event of default of a reference asset. In the event of default under the CDS, the Company would either net cash settle or make a cash payment to its counterparty and take delivery of the defaulted reference asset, from which the Company may recover all, a portion, or none of the credit loss, depending on the performance of the reference asset. Events of default, as defined in the CDS agreements, are generally triggered upon the failure to pay and similar events related to the issuer(s) of the reference asset. At September 30, 2013 and December 31, 2012, all written CDS contracts reference single name corporate credits or corporate credit indices. When the Company has written CDS, it has generally entered into offsetting CDS for the underlying reference asset, under which the Company paid a premium to its counterparty for protection against an event of default on the reference asset. The counterparties to these purchased CDS are generally of high creditworthiness and typically have ISDA master netting agreements in place that subject the CDS to master netting provisions, thereby, mitigating the risk of non-payment to the Company. As such, at September 30, 2013 the Company did not have any significant risk of making a non-recoverable payment on any written CDS. During 2013 and 2012, the only instances of default on written CDS were driven by credit indices with constituent credit default. In all cases where the Company made resulting cash payments to settle, the Company collected like amounts from the counterparties to the offsetting purchased CDS. At September 30, 2013 and December 31, 2012, the written CDS had remaining terms ranging from less than one year to two years. The maximum guarantees outstanding at September 30, 2013 and December 31, 2012, as measured by the gross notional amounts of written CDS, were $52 million. At September 30, 2013 and December 31, 2012, the gross notional amounts of purchased CDS contracts, which represent benefits to, rather than obligations of, the Company, were $52 million and $175 million, respectively. The fair values of written CDS were $2 million and $1 million at September 30, 2013 and December 31, 2012, respectively, and the fair values of purchased CDS were less than $1 million at September 30, 2013 and December 31, 2012.
The Company has also entered into TRS contracts on loans. The Company’s TRS business consists of matched trades, such that when the Company pays depreciation on one TRS, it receives the same amount on the matched TRS. To mitigate its credit risk, the Company typically receives initial cash collateral from the counterparty upon entering into the TRS and is entitled to additional collateral if the fair value of the underlying reference assets deteriorates. At September 30, 2013 and December 31, 2012, there were $1.8 billion and $1.9 billion of outstanding and offsetting TRS notional balances, respectively. The fair values of the TRS derivative assets and liabilities at September 30, 2013, were $36 million and $32 million, respectively, and related collateral held at September 30, 2013, was $289 million. The fair values of the TRS derivative assets and liabilities at December 31, 2012, were $51 million and $46 million, respectively, and related collateral held at December 31, 2012, was $282 million.
The Company writes risk participations, which are credit derivatives, whereby the Company has guaranteed payment to a dealer counterparty in the event that the counterparty experiences a loss on a derivative, such as an interest rate swap, due to a failure to pay by the counterparty’s customer (the “obligor”) on that derivative. The Company monitors its payment risk on its risk participations by monitoring the creditworthiness of the obligors, which is based on the normal credit review process the Company would have performed had it entered into the derivatives directly with the obligors. The obligors are all corporations or partnerships. However, the Company continues to monitor the creditworthiness of its obligors and the likelihood of payment could change at any time due to unforeseen circumstances. To date, no material losses have been incurred related to the Company’s written risk participations. At September 30, 2013, the remaining terms on these risk participations generally ranged from less than one year to thirteen years with a weighted average on the maximum estimated exposure of 7.1 years. The Company’s maximum estimated exposure to written risk participations, as measured by projecting a maximum value of the guaranteed derivative instruments based on interest rate curve simulations and assuming 100% default by all obligors on the maximum values, was approximately $30 million and $20 million at September 30, 2013 and December 31, 2012, respectively. The fair values of the written risk participations were less than $1 million at September 30, 2013 and December 31, 2012. As part of its trading activities, the Company may enter into purchased risk participations to mitigate credit exposure to a derivative counterparty.

Cash Flow Hedges
The Company utilizes a comprehensive risk management strategy to monitor sensitivity of earnings to movements in interest rates. Specific types of funding and principal amounts hedged are determined based on prevailing market conditions and the shape of the yield curve. In conjunction with this strategy, the Company may employ various interest rate derivatives as risk management tools to hedge interest rate risk from recognized assets and liabilities or from forecasted transactions. The terms and notional amounts of derivatives are determined based on management’s assessment of future interest rates, as well as other factors.
Interest rate swaps have been designated as hedging the exposure to the benchmark interest rate risk associated with floating rate loans. At September 30, 2013, the range of hedge maturities for hedges of floating rate loans was between one year and five years, with the weighted average being 2.2 years. Ineffectiveness on these hedges was less than $1 million during the three and nine months ended September 30, 2013 and 2012. At September 30, 2013, $390 million of the deferred net gains on derivatives that are recognized in AOCI are expected to be reclassified to net interest income over the next twelve months in connection with the recognition of interest income on these hedged items. The amount to be reclassified into income includes both active and terminated or de-designated cash flow hedges. The Company may choose to terminate or de-designate a hedging relationship in this program due to a change in the risk management objective for that specific hedge item, which may arise in conjunction with an overall balance sheet management strategy.
The Company also designated interest rate swaps to hedge exposure to changes in probable interest payments attributable to changes in the benchmark interest rate associated with a forecasted issuance of fixed rate debt.

Fair Value Hedges
The Company enters into interest rate swap agreements as part of the Company’s risk management objectives for hedging its exposure to changes in fair value due to changes in interest rates. These hedging arrangements convert Company-issued fixed rate long-term debt to floating rates. Consistent with this objective, the Company reflects the accrued contractual interest on the hedged item and the related swaps as part of current period interest. There were no components of derivative gains or losses excluded in the Company’s assessment of hedge effectiveness related to the fair value hedges.

Economic Hedging and Trading Activities
In addition to designated hedging relationships, the Company also enters into derivatives as an end user as a risk management tool to economically hedge risks associated with certain non-derivative and derivative instruments, along with entering into derivatives in a trading capacity with its clients.
The primary risks that the Company economically hedges are interest rate risk, foreign exchange risk, and credit risk. Economic hedging objectives are accomplished by entering into offsetting derivatives either on an individual basis or collectively on a macro basis and generally accomplish the Company’s goal of mitigating the targeted risk. To the extent that specific derivatives are associated with specific hedged items, the notional amounts, fair values, and gains/(losses) on the derivatives are illustrated in the tables in this footnote.
•
The Company utilizes interest rate derivatives to mitigate exposures from various instruments.
◦
The Company is subject to interest rate risk on its fixed rate debt. As market interest rates move, the fair value of the Company’s debt is affected. To protect against this risk on certain debt issuances that the Company has elected to carry at fair value, the Company has entered into pay variable-receive fixed interest rate swaps that decrease in value in a rising rate environment and increase in value in a declining rate environment.
◦
The Company is exposed to risk on the returns of certain of its brokered deposits that are carried at fair value. To hedge against this risk, the Company has entered into interest rate derivatives that mirror the risk profile of the returns on these instruments.
◦
The Company is exposed to interest rate risk associated with MSRs, which the Company hedges with a combination of mortgage and interest rate derivatives, including forward and option contracts, futures, and forward rate agreements.
◦
The Company enters into mortgage and interest rate derivatives, including forward contracts, futures, and option contracts to mitigate interest rate risk associated with IRLCs and mortgage LHFS.
•
The Company is exposed to foreign exchange rate risk associated with certain commercial loans.
•
The Company enters into CDS to hedge credit risk associated with certain loans held within its Wholesale Banking segment. The Company accounts for these contracts as derivatives and, accordingly, recognizes these contracts at fair value, with changes in fair value recognized in other income in the Consolidated Statements of Income.
•
Trading activity, as illustrated in the tables within this footnote, primarily includes interest rate swaps, equity derivatives, CDS, futures, options, and foreign currency contracts. These derivatives are entered into in a dealer capacity to facilitate client transactions or are utilized as a risk management tool by the Company as an end user in certain macro-hedging strategies. The macro-hedging strategies are focused on managing the Company’s overall interest rate risk exposure that is not otherwise hedged by derivatives or in connection with specific hedges and, therefore, the Company does not specifically associate individual derivatives with specific assets or liabilities.
Reinsurance Arrangements and Guarantees
Reinsurance Arrangements and Guarantees
NOTE 12 – REINSURANCE ARRANGEMENTS AND GUARANTEES
Reinsurance
The Company provides mortgage reinsurance on certain mortgage loans through contracts with several primary mortgage insurance companies. Under these contracts, the Company provides aggregate excess loss coverage in a mezzanine layer in exchange for a portion of the pool’s mortgage insurance premium. At September 30, 2013 and December 31, 2012, approximately $0.1 billion and $5.2 billion, respectively, of mortgage loans were covered by such mortgage reinsurance contracts. No new mortgage loans have been reinsured since January 1, 2009 and the Company has entered into commutation agreements with various mortgage insurers to commute and terminate reinsurance agreements and trust agreements. The Company’s maximum exposure to losses is limited by reinsurance contracts which define the loss amounts ceded to the Company as well as by establishing trust accounts for each contract. The trust accounts, which are comprised of funds contributed by the Company plus premiums earned under the reinsurance contracts, are maintained to fund claims made under the reinsurance contracts. If claims exceed funds held in the trust accounts, the Company does not intend to make additional contributions beyond future premiums earned under the existing contracts.
At September 30, 2013 and December 31, 2012, the total loss exposure ceded to the Company was approximately $5 million and $179 million, respectively. The maximum amount of loss exposure based on funds held in each separate trust account, including net premiums due to the trust accounts, was limited to $4 million at September 30, 2013 and $6 million at December 31, 2012. Of these amounts, $1 million and $3 million of losses have been reserved for at September 30, 2013 and December 31, 2012, respectively, reducing the Company’s net remaining loss exposure to $3 million at September 30, 2013 and December 31, 2012. The Company’s evaluation of the required reserve amount includes an estimate of claims to be paid by the trust in relation to loans in default and an assessment of the sufficiency of future revenues, including premiums and investment income on funds held in the trusts, to cover future claims. Future reported losses may exceed $3 million since future premium income will increase the amount of funds held in the trust; however, future cash losses, net of premium income, are not expected to exceed $3 million. The amount of future premium income is limited to the population of loans currently outstanding since additional loans are not being added to the reinsurance contracts and future premium income could be further curtailed to the extent the Company agrees to relinquish control of other individual trusts to the mortgage insurance companies. Premium income, which totaled less than $1 million and $2 million for the three months ended September 30, 2013 and 2012, respectively, and $1 million and $10 million for the nine months ended September 30, 2013 and 2012, respectively, is reported as part of other noninterest income. The related provision for losses, which totaled less than $1 million and $2 million for the three months ended September 30, 2013 and 2012, respectively, and $1 million and $11 million for the nine months ended September 30, 2013 and 2012, respectively, is reported as part of other noninterest expense.

Guarantees
The Company has undertaken certain guarantee obligations in the ordinary course of business. The issuance of a guarantee imposes an obligation for the Company to stand ready to perform and make future payments should certain triggering events occur. Payments may be in the form of cash, financial instruments, other assets, shares of stock, or provisions of the Company’s services. The following discussion appends and updates certain guarantees disclosed in Note 17, “Reinsurance Arrangements and Guarantees,” to the Consolidated Financial Statements in the Company's 2012 Annual Report on Form 10-K. The Company has also entered into certain contracts that are similar to guarantees, but that are accounted for as derivatives as discussed in Note 11, “Derivative Financial Instruments.”

Letters of Credit
Letters of credit are conditional commitments issued by the Company, generally to guarantee the performance of a client to a third party in borrowing arrangements, such as CP, bond financing, and similar transactions. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to clients and may be reduced by selling participations to third parties. The Company issues letters of credit that are classified as financial standby, performance standby, or commercial letters of credit.
At September 30, 2013 and December 31, 2012, the maximum potential amount of the Company’s obligation was $3.5 billion and $4.0 billion, respectively, for financial and performance standby letters of credit. The Company’s outstanding letters of credit generally have a term of less than one year but may extend longer. If a letter of credit is drawn upon, the Company may seek recourse through the client’s underlying obligation. If the client’s line of credit is also in default, the Company may take possession of the collateral securing the line of credit, where applicable. The Company monitors its credit exposure under standby letters of credit in the same manner as it monitors other extensions of credit in accordance with its credit policies. Some standby letters of credit are designed to be drawn upon and others are drawn upon only under circumstances of dispute or default in the underlying transaction to which the Company is not a party. In all cases, the Company holds the right to reimbursement from the applicant and may or may not also hold collateral to secure that right. An internal assessment of the PD and loss severity in the event of default is performed consistent with the methodologies used for all commercial borrowers. The management of credit risk regarding letters of credit leverages the risk rating process to focus higher visibility on the higher risk and/or higher dollar letters of credit. The associated reserve is a component of the unfunded commitments reserve recorded in other liabilities in the Consolidated Balance Sheets and included in the allowance for credit losses as disclosed in Note 5, “Allowance for Credit Losses.” Additionally, unearned fees relating to letters of credit are recorded in other liabilities. The net carrying amount of unearned fees was immaterial at September 30, 2013 and December 31, 2012.

Loan Sales
STM, a consolidated subsidiary of SunTrust, originates and purchases residential mortgage loans, a portion of which are sold to outside investors in the normal course of business, through a combination of whole loan sales to GSEs, Ginnie Mae, and non-agency investors. Prior to 2008, the Company also sold loans through a limited number of Company sponsored securitizations. When mortgage loans are sold, representations and warranties regarding certain attributes of the loans sold are made to these third party purchasers. Subsequent to the sale, if a material underwriting deficiency or documentation defect is discovered, STM may be obligated to repurchase the mortgage loan or to reimburse the investor for losses incurred (make whole requests) if such deficiency or defect cannot be cured by STM within the specified period following discovery. Defects in the securitization process or breaches of underwriting and servicing representations and warranties can result in loan repurchases, as well as adversely affect the valuation of MSRs, servicing advances, or other mortgage loan-related exposures, such as OREO. These representations and warranties may extend through the life of the mortgage loan. STM’s risk of loss under its representations and warranties is largely driven by borrower payment performance since investors will perform extensive reviews of delinquent loans as a means of mitigating losses.
Loan repurchase requests generally arise from loans sold during the period from January 1, 2005 to September 30, 2013, which totaled $292.0 billion at the time of sale, consisting of $227.7 billion and $30.3 billion of agency and non-agency loans, respectively, as well as $34.0 billion of loans sold to Ginnie Mae. The composition of the remaining outstanding balance by vintage and type of buyer at September 30, 2013, is shown in the following table:
 
 
Remaining Outstanding Balance by Year of Sale
(Dollars in billions)
2005
 
2006
 
2007
 
2008
 
2009
 
2010
 
2011
 
2012
 
2013

 
Total    
GSE1

$2.1

 

$2.3

 

$4.5

 

$4.0

 

$11.5

 

$7.7

 

$8.5

 

$18.0

 

$18.4

 

$77.0

Ginnie Mae1
0.4

 
0.3

 
0.3

 
1.3

 
3.3

 
2.6

 
2.1

 
4.0

 
3.1

 
17.4

Non-agency
3.3

 
4.9

 
3.2

 
—

 
—

 
—

 
—

 
—

 
—

 
11.4

Total

$5.8

 

$7.5

 

$8.0

 

$5.3

 

$14.8

 

$10.3

 

$10.6

 

$22.0

 

$21.5

 

$105.8

1 Balances based on loans currently serviced by the Company and excludes loans serviced by others and certain loans in foreclosure.

Non-agency loan sales include whole loans and loans sold in private securitization transactions. While representations and warranties have been made related to these sales, they can differ in many cases from those made in connection with loans sold to the GSEs in that non-agency loans may not be required to meet the same underwriting standards and non-agency investors may be required to demonstrate that the alleged breach was material and caused the investors' loss. Loans sold to Ginnie Mae are insured by either the FHA or VA. As servicer, we may elect to repurchase delinquent loans in accordance with Ginnie Mae guidelines; however, the loans continue to be insured. We indemnify the FHA and VA for losses related to loans not originated in accordance with their guidelines. See Note 14, "Contingencies," for additional information on the HUD Investigation regarding origination practices for FHA loans.
Although the timing and volume has varied, repurchase and make whole requests have increased over the past several years. Repurchase requests from GSEs, Ginnie Mae, and non-agency investors, for all vintages, were $1.4 billion during the nine months ended September 30, 2013, and $1.7 billion, $1.7 billion, and $1.1 billion during the years ended December 31, 2012, 2011, and 2010, respectively, and on a cumulative basis since 2005 totaled $8.1 billion. The majority of these requests are from GSEs, with a limited number of requests from non-agency investors. Repurchase requests from non-agency investors were $17 million during the nine months ended September 30, 2013, and $22 million, $50 million, and $55 million, during the years ended December 31, 2012, 2011, and 2010, respectively. Additionally, loans originated during 2006 - 2008 have consistently comprised the vast majority of total repurchase requests during the past three years.
The repurchase and make whole requests received have been primarily due to alleged material breaches of representations related to compliance with the applicable underwriting standards, including borrower misrepresentation and appraisal issues. STM performs a loan by loan review of all requests and contests demands to the extent they are not considered valid.
At September 30, 2013, the unpaid principal balance of loans related to unresolved requests previously received from investors was $376 million, comprised of $372 million from the GSEs and $4 million from non-agency investors. Comparable amounts at December 31, 2012, were $655 million, comprised of $639 million from the GSEs and $16 million from non-agency investors.
A significant degree of judgment is used to estimate the mortgage repurchase liability as the estimation process is inherently uncertain and subject to imprecision. During the third quarter of 2012, the Company received incremental information from the GSEs that, coupled with the Company's experience related to full file requests and repurchase demands, enhanced the Company's ability to estimate inherent losses attributable to the remaining expected demands on currently delinquent loans sold to the GSEs prior to 2009. As a result, the Company substantially increased the reserve during the third quarter of 2012. During the third quarter of 2013, the Company reached an agreement with Freddie Mac and Fannie Mae under which Freddie Mac and Fannie Mae released the Company from certain existing and future repurchase obligations for loans funded by Freddie Mac between 2000 and 2008 and Fannie Mae between 2000 and 2012. While the majority of both repurchase settlements was covered by the Company's existing mortgage repurchase liability, the Company increased the reserve in the third quarter of 2013 by $63 million as a result of these settlements, as the population of loans included under the agreements was broader, due to inclusion of future repurchase obligations, than the population of loans considered under the Company's existing reserve for incurred losses.

The Company believes its reserve appropriately estimates incurred losses based on its current analysis and assumptions, including the Freddie Mac and Fannie Mae settlement agreements. At September 30, 2013 and December 31, 2012, the Company's estimate of the liability for incurred losses related to all vintages of mortgage loans sold totaled $281 million and $632 million, respectively. The liability is recorded in other liabilities in the Consolidated Balance Sheets, and the related repurchase provision is recognized in mortgage production related (loss)/income in the Consolidated Statements of Income.

The following table summarizes the changes in the Company’s reserve for mortgage loan repurchases:
 
 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
 
2013
 
2012
 
2013
 
2012
Balance at beginning of period
 

$363

 

$434

 

$632

 

$320

Repurchase provision
 
73

 
371

 
102

 
701

Charge-offs
 
(155
)
 
(111
)
 
(453
)
 
(327
)
Balance at end of period
 

$281

 

$694

 

$281

 

$694



During the nine months ended September 30, 2013 and 2012, the Company repurchased or otherwise settled mortgages with original loan balances of $800 million and $558 million, respectively, related to investor demands. At September 30, 2013, the carrying value of outstanding repurchased mortgage loans, net of any allowance for loan losses, was $375 million, comprised of $321 million LHFI and $54 million LHFS, respectively, of which $49 million LHFI and $54 million LHFS, were nonperforming. At December 31, 2012, the carrying value of outstanding repurchased mortgage loans, net of any allowance for loan losses, was $240 million, comprised of $209 million LHFI and $31 million LHFS, respectively, of which $70 million LHFI and $31 million LHFS, were nonperforming.
The Company normally retains servicing rights when loans are transferred. As servicer, the Company makes representations and warranties that it will service the loans in accordance with investor servicing guidelines and standards which may include (i) collection and remittance of principal and interest, (ii) administration of escrow for taxes and insurance, (iii) advancing principal, interest, taxes, insurance, and collection expenses on delinquent accounts, (iv) loss mitigation strategies including loan modifications, and (v) foreclosures. The Company recognizes a liability for contingent losses when MSRs are sold, which totaled $5 million and $12 million at September 30, 2013 and December 31, 2012.
Contingent Consideration
The Company has contingent payment obligations related to certain business combination transactions. Payments are calculated using certain post-acquisition performance criteria. The potential obligation and amount recorded as a liability representing the fair value of the contingent payments was $26 million and $30 million at September 30, 2013 and December 31, 2012, respectively. If required, these contingent payments will be payable within the next three years.
Visa
The Company issues credit and debit transactions through Visa and MasterCard International. The Company is a defendant, along with Visa and MasterCard International (the “Card Associations”), as well as several other banks, in one of several antitrust lawsuits challenging the practices of the Card Associations (the “Litigation”). The Company entered into judgment and loss sharing agreements with Visa and certain other banks in order to apportion financial responsibilities arising from any potential adverse judgment or negotiated settlements related to the Litigation. Additionally, in connection with Visa's restructuring in 2007, a provision of the original Visa By-Laws, Section 2.05j, was restated in Visa's certificate of incorporation. Section 2.05j contains a general indemnification provision between a Visa member and Visa, and explicitly provides that after the closing of the restructuring, each member's indemnification obligation is limited to losses arising from its own conduct and the specifically defined Litigation.
Agreements associated with Visa's IPO have provisions that Visa will fund a litigation escrow account, established for the purpose of funding judgments in, or settlements of, the Litigation. Since inception of the escrow account, Visa has funded over $8.5 billion into the escrow account, approximately $4.1 billion of which has been paid out in Litigation settlements and another $4.4 billion which was paid into a settlement fund during 2012. If the escrow account is insufficient to cover the Litigation losses, then Visa will issue additional Class A shares (“loss shares”). The proceeds from the sale of the loss shares would then be deposited in the escrow account. The issuance of the loss shares will cause a dilution of Visa's Class B shares as a result of an adjustment to lower the conversion factor of the Class B shares to Class A shares. Visa U.S.A.'s members are responsible for any portion of the settlement or loss on the Litigation after the escrow account is depleted and the value of the Class B shares is fully-diluted. In May 2009, the Company sold its 3.2 million Class B shares to the Visa Counterparty and entered into a derivative with the Visa Counterparty. The Company received $112 million and recognized a gain of $112 million in connection with these transactions. Under the derivative, the Visa Counterparty is compensated by the Company for any decline in the conversion factor as a result of the outcome of the Litigation. Conversely, the Company is compensated by the Visa Counterparty for any increase in the conversion factor. The amount of payments made or received under the derivative is a function of the 3.2 million shares sold to the Visa Counterparty, the change in conversion rate, and Visa’s share price. The Visa Counterparty, as a result of its ownership of the Class B shares, is impacted by dilutive adjustments to the conversion factor of the Class B shares caused by the Litigation losses. The conversion factor at the inception of the derivative in May 2009 was 0.6296 and at September 30, 2013 the conversion factor was 0.4206 due to Visa’s funding of the litigation escrow account since 2009. Decreases in the conversion factor triggered payments by the Company to the Visa Counterparty of $0 and $25 million for the nine months ended September 30, 2013 and 2012, respectively.
During 2012, the Card Associations and defendants signed a memorandum of understanding to enter into a settlement agreement to resolve the plaintiffs' claims in the Litigation. Visa's share of the claims represents approximately $4.4 billion, which was paid from the escrow account into a settlement fund during 2012. During the second quarter of 2013, various members of the putative class elected to opt out of the settlement. This will result in a proportional decrease in the amount of the settlement. While the estimated fair value of the derivative liability was immaterial at September 30, 2013 and December 31, 2012, the ultimate impact to the Company could be significantly different if the settlement is not approved and/or based on the ultimate resolution with the plaintiffs that opted out of the settlement. 

Tax Credit Investments Sold
SunTrust Community Capital, a SunTrust subsidiary, previously obtained state and federal tax credits through the construction and development of affordable housing properties and continues to obtain state and federal tax credits through investments in affordable housing developments. SunTrust Community Capital or its subsidiaries are limited and/or general partners in various partnerships established for the properties. Some of the investments that generate state tax credits may be sold to outside investors. At September 30, 2013, SunTrust Community Capital has completed six sales containing guarantee provisions stating that SunTrust Community Capital will make payment to the outside investors if the tax credits become ineligible. SunTrust Community Capital also guarantees that the general partner under the transaction will perform on the delivery of the credits. The guarantees are expected to expire within a fifteen year period from inception. At September 30, 2013, the maximum potential amount that SunTrust Community Capital could be obligated to pay under these guarantees is $37 million; however, SunTrust Community Capital can seek recourse against the general partner. Additionally, SunTrust Community Capital can seek reimbursement from cash flow and residual values of the underlying affordable housing properties provided that the properties retain value. At September 30, 2013 and December 31, 2012, $1 million and $3 million, respectively, was accrued, representing the remainder of tax credits to be delivered, and were recorded in other liabilities in the Consolidated Balance Sheets.

Other
In the normal course of business, the Company enters into indemnification agreements and provides standard representations and warranties in connection with numerous transactions. These transactions include those arising from securitization activities, underwriting agreements, merger and acquisition agreements, swap clearing agreements, loan sales, contractual commitments, payment processing, sponsorship agreements, and various other business transactions or arrangements. The extent of the Company's obligations under these indemnification agreements depends upon the occurrence of future events; therefore, the Company's potential future liability under these arrangements is not determinable.
Fair Value Election and Measurement
Fair Value Election and Measurement
NOTE 13 - FAIR VALUE ELECTION AND MEASUREMENT
The Company carries certain assets and liabilities at fair value on a recurring basis and appropriately classifies them as level 1, 2, or 3 within the fair value hierarchy. The Company’s recurring fair value measurements are based on a requirement to carry such assets and liabilities at fair value or the Company’s election to carry certain financial assets and liabilities at fair value. Assets and liabilities that are required to be carried at fair value on a recurring basis include trading securities, securities AFS, and derivative financial instruments. Assets and liabilities that the Company has elected to carry at fair value on a recurring basis include certain LHFS and LHFI, MSRs, certain brokered time deposits, and certain issuances of fixed rate debt.
In certain circumstances, fair value enables a company to more accurately align its financial performance with the economic value of actively traded or hedged assets or liabilities. Fair value also enables a company to mitigate the non-economic earnings volatility caused from financial assets and liabilities being carried at different bases of accounting, as well as, to more accurately portray the active and dynamic management of a company’s balance sheet.
Depending on the nature of the asset or liability, the Company uses various valuation techniques and assumptions in estimating fair value. The assumptions used to estimate the value of an instrument have varying degrees of impact to the overall fair value of the asset or liability. This process involves the gathering of multiple sources of information, including broker quotes, values provided by pricing services, trading activity in other similar securities, market indices, pricing matrices along with employing various modeling techniques, such as discounted cash flow analyses, in arriving at the best estimate of fair value. Any model used to produce material financial reporting information is required to have a satisfactory independent review performed on an annual basis, or more frequently, when significant modifications to the functionality of the model are made. This review is performed by an internal group that separately reports to the Corporate Risk Function.

The Company has formal processes and controls in place to ensure the appropriateness of all fair value estimates. For fair values obtained from a third party or those that include certain trader estimates of fair value, there is an internal independent price validation function within the Finance organization that provides oversight for fair value estimates. For level 2 instruments and certain level 3 instruments, the validation generally involves evaluating pricing received from two or more other third party pricing sources that are widely used by market participants. The Company reviews pricing validation information from both a qualitative and quantitative perspective and determines whether pricing differences exceed acceptable thresholds. If the pricing differences exceed acceptable thresholds, then the Company reviews differences in valuation approaches used, which may include contacting a pricing service to gain further information on the valuation of a particular security or class of securities to determine the ultimate resolution of the pricing variance, which could include an adjustment to the price used for financial reporting purposes.

The Company classifies instruments as level 2 in the fair value hierarchy if it is able to determine that external pricing sources are using similar instruments trading in the markets as the basis for estimating fair value. One way the Company determines this is by the number of pricing services that will provide a quote on the instrument along with the range of values provided by those pricing services. A wide range of quoted values may indicate that significant adjustments to the trades in the market are being made by the pricing services. The Company maintains a cross-functional approach if the fair value estimates for level 3 securities AFS and trading assets and liabilities are internally developed, since the selection of unobservable inputs is subjective. This cross-functional approach includes input on assumptions not only from the related business unit, but also from risk management and finance. A consensus of the estimate of the instrument's fair value is reached after evaluating all available information pertaining to fair value. Inputs, assumptions, and overall conclusions on internally priced level 3 valuations are formally documented on a quarterly basis. As the balance of level 3 securities has declined, the need for this cross-functional approach is now limited primarily to the remaining ARS instruments that are valued internally.
The classification of an instrument as level 3 involves judgment and is based on a variety of subjective factors. These factors are used in the assessment of whether a market is inactive, resulting in the application of significant unobservable assumptions in the valuation of a financial instrument. A market is considered inactive if significant decreases in the volume and level of activity for the asset or liability have been observed. In determining whether a market is inactive, the Company evaluates such factors as the number of recent transactions in either the primary or secondary markets, whether price quotations are current, the nature of the market participants, the variability of price quotations, the significance of bid/ask spreads, declines in (or the absence of) new issuances, and the availability of public information. Inactive markets necessitate the use of additional judgment in valuing financial instruments, such as pricing matrices, cash flow modeling, and the selection of an appropriate discount rate. The assumptions used to estimate the value of an instrument where the market was inactive are based on the Company’s assessment of the assumptions a market participant would use to value the instrument in an orderly transaction and includes consideration of illiquidity in the current market environment.
Recurring Fair Value Measurements
The following tables present certain information regarding assets and liabilities measured at fair value on a recurring basis and the changes in fair value for those specific financial instruments in which fair value has been elected.
 
September 30, 2013
 
Fair Value Measurements
 
 
 
 
(Dollars in millions)
Level 1
 
Level 2
 
Level 3
 
Netting
 Adjustments 1
 
Assets/Liabilities
at Fair Value
Assets
 
 
 
 
 
 
 
 
 
Trading assets:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities

$199

 

$—

 

$—

 

$—

 

$199

Federal agency securities
—

 
647

 
—

 
—

 
647

U.S. states and political subdivisions
—

 
52

 
—

 
—

 
52

MBS - agency
—

 
332

 
—

 
—

 
332

CDO/CLO securities
—

 
2

 
63

 
—

 
65

ABS
—

 
—

 
6

 
—

 
6

Corporate and other debt securities
—

 
601

 
—

 
—

 
601

CP
—

 
71

 
—

 
—

 
71

Equity securities
104

 
—

 
—

 
—

 
104

Derivative contracts 2
705

 
5,404

 
—

 
(4,638
)
 
1,471

Trading loans
—

 
2,183

 
—

 
—

 
2,183

Total trading assets
1,008

 
9,292

 
69

 
(4,638
)
 
5,731

Securities AFS:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
771

 
—

 
—

 
—

 
771

Federal agency securities
—

 
2,171

 
—

 
—

 
2,171

U.S. states and political subdivisions
—

 
211

 
34

 
—

 
245

MBS - agency
—

 
18,358

 
—

 
—

 
18,358

MBS - private
—

 
—

 
166

 
—

 
166

ABS
—

 
75

 
21

 
—

 
96

Corporate and other debt securities
—

 
38

 
5

 
—

 
43

   Other equity securities 3
107

 
—

 
669

 
—

 
776

Total securities AFS
878

 
20,853

 
895

 
—

 
22,626

LHFS:
 
 
 
 
 
 
 
 
 
Residential loans
—

 
1,924

 
4

 
—

 
1,928

Corporate and other loans
—

 
312

 
—

 
—

 
312

Total LHFS
—

 
2,236

 
4

 
—

 
2,240

LHFI
—

 
—

 
316

 
—

 
316

MSRs
—

 
—

 
1,248

 
—

 
1,248

Other assets 2,4
—

 
74

 
47

 
(63
)
 
58

Liabilities
 
 
 
 
 
 
 
 
 
Trading liabilities:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
584

 
—

 
—

 
—

 
584

   MBS - agency
—

 
1

 
—

 
—

 
1

Corporate and other debt securities
—

 
230

 
—

 
—

 
230

Equity securities
5

 
—

 
—

 
—

 
5

Derivative contracts 2
421

 
5,054

 
—

 
(5,031
)
 
444

Total trading liabilities
1,010

 
5,285

 
—

 
(5,031
)
 
1,264

Brokered time deposits
—

 
784

 
—

 
—

 
784

Long-term debt
—

 
1,593

 
—

 
—

 
1,593

Other liabilities 2,4,5
—

 
164

 
28

 
(115
)
 
77


1 Amounts represent offsetting cash collateral received from and paid to the same derivative counterparties and the impact of netting derivative assets and derivative liabilities when a legally enforceable master netting agreement or similar agreement exists.
2 See Note 11, "Derivative Financial Instruments," for further disaggregation of derivative assets and liabilities.
3 Includes $266 million of FHLB of Atlanta stock, $402 million of Federal Reserve Bank stock, $107 million in mutual fund investments, and $1 million of other.
4 These amounts include IRLCs and derivative financial instruments entered into by the Mortgage Banking segment to hedge its interest rate risk.
5 These amounts include the derivative associated with the Company's sale of Visa shares during the year ended December 31, 2009, certain CDS, and contingent consideration obligations related to acquisitions.







 
December 31, 2012
 
Fair Value Measurements
 
 
 
 
(Dollars in millions)
Level 1
 
Level 2
 
Level 3
 
Netting
 Adjustments 1
 
Assets/Liabilities
at Fair Value
Assets
 
 
 
 
 
 
 
 
 
Trading assets:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities

$111

 

$—

 

$—

 

$—

 

$111

Federal agency securities
—

 
462

 
—

 
—

 
462

U.S. states and political subdivisions
—

 
34

 
—

 
—

 
34

MBS - agency
—

 
432

 
—

 
—

 
432

CDO/CLO securities
—

 
3

 
52

 
—

 
55

ABS
—

 
31

 
5

 
—

 
36

Corporate and other debt securities
—

 
566

 
1

 
—

 
567

CP
—

 
28

 
—

 
—

 
28

Equity securities
100

 
—

 
—

 
—

 
100

Derivative contracts 2
483

 
7,885

 
—

 
(6,463
)
 
1,905

Trading loans
—

 
2,319

 
—

 
—

 
2,319

Total trading assets
694

 
11,760

 
58

 
(6,463
)
 
6,049

Securities AFS:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
222

 
—

 
—

 
—

 
222

Federal agency securities
—

 
2,069

 
—

 
—

 
2,069

U.S. states and political subdivisions
—

 
274

 
46

 
—

 
320

MBS - agency
—

 
18,169

 
—

 
—

 
18,169

MBS - private
—

 
—

 
209

 
—

 
209

ABS
—

 
195

 
21

 
—

 
216

Corporate and other debt securities
—

 
41

 
5

 
—

 
46

   Other equity securities 3
69

 
—

 
633

 
—

 
702

Total securities AFS
291

 
20,748

 
914

 
—

 
21,953

LHFS:
 
 
 
 
 
 
 
 
 
Residential loans
—

 
2,916

 
8

 
—

 
2,924

Corporate and other loans
—

 
319

 
—

 
—

 
319

Total LHFS
—

 
3,235

 
8

 
—

 
3,243

LHFI
—

 
—

 
379

 
—

 
379

MSRs
—

 
—

 
899

 
—

 
899

Other assets 2,4
2

 
154

 
132

 
(110
)
 
178

Liabilities
 
 
 
 
 
 
 
 
 
Trading liabilities:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
582

 
—

 
—

 
—

 
582

Corporate and other debt securities
—

 
173

 
—

 
—

 
173

Equity securities
9

 
—

 
—

 
—

 
9

Derivative contracts 2
300

 
7,158

 
—

 
(7,061
)
 
397

Total trading liabilities
891

 
7,331

 
—

 
(7,061
)
 
1,161

Brokered time deposits
—

 
832

 
—

 
—

 
832

Long-term debt
—

 
1,622

 
—

 
—

 
1,622

Other liabilities 2,4,5
—

 
56

 
31

 
(41
)
 
46

1 Amounts represent offsetting cash collateral received from and paid to the same derivative counterparties and the impact of netting derivative assets and derivative liabilities when a legally enforceable master netting agreement or similar agreement exists.
2 See Note 11, "Derivative Financial Instruments," for further disaggregation of derivative assets and liabilities.
3 Includes $229 million of FHLB of Atlanta stock, $402 million of Federal Reserve Bank stock, $69 million in mutual fund investments, and $2 million of other.
4 These amounts include IRLCs and derivative financial instruments entered into by the Mortgage Banking segment to hedge its interest rate risk.
5 These amounts include the derivative associated with the Company's sale of Visa shares during the year ended December 31, 2009, certain CDS, and contingent consideration obligations related to acquisitions.




The following tables present the difference between the aggregate fair value and the unpaid principal balance of trading loans, LHFS, LHFI, brokered time deposits, and long-term debt instruments for which the FVO has been elected. For LHFS and LHFI for which the FVO has been elected, the tables also include the difference between aggregate fair value and the unpaid principal balance of loans that are 90 days or more past due, as well as loans in nonaccrual status.

(Dollars in millions)
Aggregate Fair Value at
September 30, 2013
 
Aggregate Unpaid Principal
Balance under FVO at
September 30, 2013
 
Fair Value
Over/(Under)
Unpaid Principal
Assets:
 
 
 
 
 
Trading loans

$2,183

 

$2,159

 

$24

LHFS
2,229

 
2,183

 
46

Past due loans of 90 days or more
1

 
1

 
—

Nonaccrual loans
10

 
11

 
(1
)
LHFI
309

 
328

 
(19
)
Past due loans of 90 days or more
1

 
1

 
—

Nonaccrual loans
6

 
10

 
(4
)
Liabilities:
 
 
 
 
 
Brokered time deposits
784

 
779

 
5

Long-term debt
1,593

 
1,460

 
133

(Dollars in millions)
Aggregate Fair Value at
December 31, 2012
 

Aggregate Unpaid Principal
Balance under FVO at
December 31, 2012
 

Fair Value
Over/(Under)
Unpaid Principal
Assets:
 
 
 
 
 
Trading loans

$2,319

 

$2,285

 

$34

LHFS
3,237

 
3,109

 
128

Past due loans of 90 days or more
3

 
5

 
(2
)
Nonaccrual loans
3

 
12

 
(9
)
LHFI
360

 
371

 
(11
)
Past due loans of 90 days or more
1

 
3

 
(2
)
Nonaccrual loans
18

 
28

 
(10
)
Liabilities:
 
 
 
 
 
Brokered time deposits
832

 
825

 
7

Long-term debt
1,622

 
1,462

 
160


The following tables present the change in fair value during the three and nine months ended September 30, 2013 and 2012, of financial instruments for which the FVO has been elected, as well as MSRs. The tables do not reflect the change in fair value attributable to the related economic hedges the Company used to mitigate the market-related risks associated with the financial instruments. Generally, the changes in the fair value of economic hedges are also recognized in trading income, mortgage production related (loss)/income, or mortgage servicing related income, as appropriate, and are designed to partially offset the change in fair value of the financial instruments referenced in the tables below. The Company’s economic hedging activities are deployed at both the instrument and portfolio level.

 
Fair Value Gain/(Loss) for the Three Months Ended
September 30, 2013, for Items Measured at Fair Value Pursuant to Election of the FVO
 
Fair Value Gain/(Loss) for the Nine Months Ended
September 30, 2013, for Items Measured at Fair Value
Pursuant to Election of the FVO
(Dollars in millions)
Trading Income
 
Mortgage
Production
Related
(Loss)/
  Income 1
 
Mortgage
Servicing
Related
Income
 
Total Changes
in Fair Values  
Included in
Current Period
  Earnings 2
 
Trading
Income
 
Mortgage
Production
Related
(Loss)/
Income 1
 
Mortgage
Servicing
Related
Income
 
Total Changes
in Fair Values  
Included in
Current Period
  Earnings 2
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading loans

$3

 

$—

 

$—

 

$3

 

$8

 

$—

 

$—

 

$8

LHFS
1

 
4

 
—

 
5

 
2

 
(103
)
 
—

 
(101
)
LHFI
—

 
5

 
—

 
5

 
—

 
(5
)
 
—

 
(5
)
MSRs
—

 
1

 
(56
)
 
(55
)
 
—

 
3

 
42

 
45

 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brokered time deposits
2

 
—

 
—

 
2

 
6

 
—

 
—

 
6

Long-term debt
—

 
—

 
—

 
—

 
27

 
—

 
—

 
27

1 Income related to LHFS does not include income from IRLCs. For the three and nine months ended September 30, 2013, income related to MSRs includes $1 million and $3 million, respectively, of MSRs recognized upon the sale of loans reported at LOCOM.
2 Changes in fair value for the three and nine months ended September 30, 2013 exclude accrued interest for the periods then ended. Interest income or interest expense on trading loans, LHFS, LHFI, brokered time deposits, and long-term debt that have been elected to be carried at fair value are recognized in interest income or interest expense in the Consolidated Statements of Income.



 
Fair Value Gain/(Loss) for the Three Months Ended
September 30, 2012, for Items Measured at Fair Value
Pursuant to Election of the FVO
 
Fair Value Gain/(Loss) for the Nine Months Ended
September 30, 2012, for Items Measured at Fair Value
Pursuant to Election of the FVO
(Dollars in millions)
Trading Income
 
Mortgage
Production
Related
(Loss)/
  Income 1
 
Mortgage
Servicing
Related
Income
 
Total Changes
in Fair Values  
Included in
Current
Period
  Earnings 2
 
Trading
Income
 
Mortgage
Production
Related
(Loss)/
Income 1
 
Mortgage
Servicing
Related
Income
 
Total Changes
in Fair Values  
Included in
Current
Period
  Earnings 2
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading loans

$9

 

$—

 

$—

 

$9

 

$25

 

$—

 

$—

 

$25

LHFS
5

 
67

 
—

 
72

 
10

 
80

 
—

 
90

LHFI
—

 
5

 
—

 
5

 
1

 
7

 
—

 
8

MSRs
—

 
1

 
(116
)
 
(115
)
 
—

 
31

 
(330
)
 
(299
)
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brokered time deposits
(3
)
 
—

 
—

 
(3
)
 
4

 
—

 
—

 
4

Long-term debt
(41
)
 
—

 
—

 
(41
)
 
(55
)
 
—

 
—

 
(55
)
1 Income related to LHFS does not include income from IRLCs. For the three and nine months ended September 30, 2012, income related to MSRs includes $1 million and $31 million, respectively, of MSRs recognized upon the sale of loans reported at LOCOM.
2 Changes in fair value for the three and nine months ended September 30, 2012 exclude accrued interest for the periods then ended. Interest income or interest expense on trading loans, LHFS, LHFI, brokered time deposits, and long-term debt that have been elected to be carried at fair value are recognized in interest income or interest expense in the Consolidated Statements of Income.
 
 
 
 
 
 
 
 
The following is a discussion of the valuation techniques and inputs used in developing fair value measurements for assets and liabilities classified as level 2 or 3 that are measured at fair value on a recurring basis, based on the class of asset or liability as determined by the nature and risks of the instrument.
Trading Assets and Securities Available for Sale
Unless otherwise indicated, trading assets are priced by the trading desk and securities AFS are valued by an independent third party pricing service.

Federal agency securities
The Company includes in this classification securities issued by federal agencies and GSEs. Agency securities consist of debt obligations issued by HUD, FHLB, and other agencies or collateralized by loans that are guaranteed by the SBA and are, therefore, backed by the full faith and credit of the U.S. government. For SBA instruments, the Company estimated fair value based on pricing from observable trading activity for similar securities or obtained fair values from a third party pricing service; accordingly, the Company has classified these instruments as level 2.
U.S. states and political subdivisions
The Company’s investments in U.S. states and political subdivisions (collectively “municipals”) include obligations of county and municipal authorities and agency bonds, which are general obligations of the municipality or are supported by a specified revenue source. Holdings were geographically dispersed, with no significant concentrations in any one state or municipality. Additionally, all but an immaterial amount of AFS municipal obligations classified as level 2 are highly rated or are otherwise collateralized by securities backed by the full faith and credit of the federal government.
Level 3 AFS municipal securities includes ARS purchased since the auction rate market began failing in February 2008 and have been considered level 3 securities due to the significant decrease in the volume and level of activity in these markets, which has necessitated the use of significant unobservable inputs into the Company’s valuations. Municipal ARS are classified as securities AFS. These securities were valued based on comparisons to similar ARS for which auctions are currently successful and/or to longer term, non-ARS issued by similar municipalities. The Company also evaluated the relative strength of the municipality and made appropriate downward adjustments in price based on the credit rating of the municipality as well as the relative financial strength of the insurer on those bonds. Although auctions for several municipal ARS have been operating successfully, ARS owned by the Company at September 30, 2013, continued to be classified as level 3 as they are those ARS for which the auctions continued to fail; accordingly, due to the uncertainty around the success rates for auctions and the absence of any successful auctions for these identical securities, the Company continued to price the ARS below par.
Level 3 AFS municipal bond securities also include bonds that are only redeemable with the issuer at par and cannot be traded in the market. As such, no significant observable market data for these instruments is available. To estimate pricing on these securities, the Company utilized a third party municipal bond yield curve for the lowest investment grade bonds and priced each bond based on the yield associated with that maturity.
MBS – agency
MBS – agency includes pass-through securities and collateralized mortgage obligations issued by GSEs and U.S. government agencies, such as Fannie Mae, Freddie Mac, and Ginnie Mae. Each security contains a guarantee by the issuing GSE or agency. For agency MBS, the Company estimated fair value based on pricing from observable trading activity for similar securities or obtained fair values from a third party pricing service; accordingly, the Company has classified these instruments as level 2.
MBS – private
Private MBS includes purchased interests in third party securitizations, as well as retained interests in Company-sponsored securitizations of 2006 and 2007 vintage residential mortgages; including both prime jumbo fixed rate collateral and floating rate collateral. At the time of purchase or origination, these securities had high investment grade ratings, however, through the credit crisis, they have experienced a deterioration in credit quality leading to downgrades to non-investment grade levels. Generally, the Company obtains pricing for its securities from an independent pricing service. The Company evaluates third party pricing to determine the reasonableness of the information relative to changes in market data, such as any recent trades, market information received from outside market participants and analysts, and/or changes in the underlying collateral performance. Even though third party pricing has been available, the Company continued to classify private MBS as level 3, as the Company believes that this third party pricing relies on significant unobservable assumptions, as evidenced by a persistently wide bid-ask price range and variability in pricing from the pricing services, particularly for the vintage and exposures held by the Company.

Securities that are classified as AFS and are in an unrealized loss position are included as part of the Company's quarterly OTTI evaluation process. See Note 3, “Securities Available for Sale,” for details regarding assumptions used to assess impairment and impairment amounts recognized through earnings on private MBS.

CDO/CLO securities
The Company’s investments in level 3 trading CDOs consisted of senior ARS interests in Company-sponsored securitizations of trust preferred collateral. The auctions related to these securities continue to fail and the Company continues to make significant adjustments to valuation assumptions based on information available from observable secondary market trading of similar term securities; therefore, the Company continues to classify these as level 3 investments. The Company values these interests utilizing a pricing matrix based on a range of overcollateralization levels that is periodically updated based on discussions with the dealer community along with limited trade data. Under this modified approach, at September 30, 2013 all CDO ARS were valued using a simplified discounted cash flow approach that prices the securities to their expected maturity. The primary inputs and assumptions considered by the Company in valuing these retained interests were overcollateralization levels (impacted by credit losses) and the discount margin over LIBOR. See the level 3 assumptions table in this note, as well as Note 7, "Certain Transfers of Financial Assets and Variable Interest Entities," for discussion of the sensitivity of these interests to changes in the assumptions.
Asset-Backed Securities
Level 2 ABS classified as securities AFS are primarily interests collateralized by third party securitizations of 2009 through 2011 vintage auto loans. These ABS are either publicly traded or are 144A privately placed bonds. The Company utilizes an independent pricing service to obtain fair values for publicly traded securities and similar securities for estimating the fair value of the privately placed bonds. No significant unobservable assumptions were used in pricing the auto loan ABS; therefore, the Company classified these bonds as level 2. Level 3 ABS classified as securities AFS are valued based on third party pricing with significant unobservable assumptions. Additionally, any trading ARS are classified as level 2 due to observable market trades and bids for similar senior securities. These ARS consisted of student loan ABS that were generally collateralized by FFELP student loans, the majority of which benefited from a maximum guarantee amount of 97%. During the first quarter of 2013, the Company sold the remaining senior student loan ARS. For valuations of subordinate securities in the same structure, the Company adjusts valuations on the senior securities based on the likelihood that the issuer will refinance in the near term, a security’s level of subordination in the structure, and/or the perceived risk of the issuer as determined by credit ratings or total leverage of the trust. These adjustments may be significant; therefore, the subordinate student loan ARS held as trading assets continue to be classified as level 3.
Corporate and other debt securities
Corporate debt securities are predominantly comprised of senior and subordinate debt obligations of domestic corporations and are classified as level 2. Other debt securities in level 3 primarily include bonds that are redeemable with the issuer at par and cannot be traded in the market; as such, no significant observable market data for these instruments is available.
Commercial Paper
From time to time, the Company trades third party CP that is generally short-term in nature (less than 30 days) and highly rated. The Company estimates the fair value of this CP based on observable pricing from executed trades of similar instruments; thus, CP is classified as level 2.
Equity securities
Level 3 equity securities classified as securities AFS include FHLB stock and Federal Reserve Bank stock, which are redeemable with the issuer at cost and cannot be traded in the market. As such, no significant observable market data for these instruments is available. The Company accounts for the stock based on industry guidance that requires these investments be carried at cost and evaluated for impairment based on the ultimate recovery of cost.

Derivative contracts (trading assets or trading liabilities)
With the exception of certain instruments discussed under "other assets/liabilities, net" that qualify as derivative instruments, the Company’s derivative instruments are level 1 or 2 instruments. Level 1 derivative contracts generally include exchange-traded futures or option contracts for which pricing is readily available.
The Company’s level 2 instruments are predominantly standard OTC swaps, options, and forwards, with underlying market variables of interest rates, foreign exchange, equity, and credit. Because fair values for OTC contracts are not readily available, the Company estimates fair values using internal, but standard, valuation models that incorporate market-observable inputs. The valuation model is driven by the type of contract: for option-based products, the Company uses an appropriate option pricing model, such as Black-Scholes; for forward-based products, the Company’s valuation methodology is generally a discounted cash flow approach. The primary drivers of the fair values of derivative instruments are the underlying variables, such as interest rates, exchange rates, equity, or credit. As such, the Company uses market-based assumptions for all of its significant inputs, such as interest rate yield curves, quoted exchange rates and spot prices, market implied volatilities, and credit curves.
Derivative instruments are primarily transacted in the institutional dealer market and priced with observable market assumptions at a mid-market valuation point, with appropriate valuation adjustments for liquidity and credit risk. For purposes of valuation adjustments to its derivative positions, the Company has evaluated liquidity premiums that may be demanded by market participants, as well as the credit risk of its counterparties and its own credit. The Company has considered factors such as the likelihood of default by itself and its counterparties, its net exposures, and remaining maturities in determining the appropriate fair value adjustments to record. Generally, the expected loss of each counterparty is estimated using the Company's proprietary internal risk rating system. The risk rating system utilizes counterparty-specific probabilities of default and LGD estimates to derive the expected loss. For counterparties that are rated by national rating agencies, those ratings are also considered in estimating the credit risk. In addition, counterparty exposure is evaluated by netting positions that are subject to master netting arrangements, as well as considering the amount of marketable collateral securing the position. Specifically approved counterparties and exposure limits are defined. Creditworthiness of the approved counterparties is regularly reviewed and appropriate business action is taken to adjust the exposure to certain counterparties, as necessary. This approach used to estimate exposures to counterparties is also used by the Company to estimate its own credit risk on derivative liability positions. See Note 11, “Derivative Financial Instruments,” for additional information on the Company's derivative contracts.

Trading loans
The Company engages in certain businesses whereby the election to carry loans at fair value for financial reporting aligns with the underlying business purpose. Specifically, the loans that are included within this classification are: (i) loans made or acquired in connection with the Company’s TRS business (see Note 7, "Certain Transfers of Financial Assets and Variable Interest Entities," and Note 11, “Derivative Financial Instruments,” for further discussion of this business), (ii) loans backed by the SBA, and (iii) the loan sales and trading business within the Company’s Wholesale Banking segment. All of these loans are classified as level 2, due to the market data that the Company uses in the estimate of fair value.
The loans made in connection with the Company’s TRS business are short-term, demand loans, whereby the repayment is senior in priority and whose value is collateralized. While these loans do not trade in the market, the Company believes that the par amount of the loans approximates fair value and no unobservable assumptions are made by the Company to arrive at this conclusion. At September 30, 2013 and December 31, 2012, the Company had outstanding $1.8 billion and $1.9 billion, respectively, of such short-term loans carried at fair value.
SBA loans are similar to SBA securities discussed herein under “Federal agency securities,” except for their legal form. In both cases, the Company trades instruments that are fully guaranteed by the U.S. government as to contractual principal and interest and there is sufficient observable trading activity upon which to base the estimate of fair value. As these SBA loans are fully guaranteed, the changes in fair value are attributable to factors other than instrument-specific credit risk.
The loans from the Company’s sales and trading business are commercial and corporate leveraged loans that are either traded in the market or for which similar loans trade. The Company elected to carry these loans at fair value since they are actively traded. For the three and nine months ended September 30, 2013, the Company recognized gains of $2 million and $4 million, respectively, in fair value attributable to instrument-specific credit risk in the Consolidated Statements of Income. For the three and nine months ended September 30, 2012, the Company recognized gains of $1 million and $3 million, respectively, in fair value attributable to instrument-specific credit risk in the Consolidated Statements of Income. The Company is able to obtain fair value estimates for substantially all of these loans through a third party valuation service that is broadly used by market participants. While most of the loans are traded in the market, the Company does not believe that trading activity qualifies the loans as level 1 instruments, as the volume and level of trading activity is subject to variability and the loans are not exchange-traded, such that the Company believes that level 2 is a more appropriate presentation of the underlying market activity for the loans. At September 30, 2013 and December 31, 2012, $297 million and $357 million, respectively, of loans related to the Company’s trading business were held in inventory.

Loans Held for Sale and Loans Held for Investment
Residential LHFS
The Company values certain newly-originated mortgage LHFS predominantly at fair value based upon defined product criteria. The Company chooses to fair value these mortgage LHFS to eliminate the complexities and inherent difficulties of achieving hedge accounting and to better align reported results with the underlying economic changes in value of the loans and related hedge instruments. Origination fees and costs are recognized in earnings when earned or incurred. The servicing value is included in the fair value of the loan and initially recognized at the time the Company enters into IRLCs with borrowers. The Company uses derivatives to economically hedge changes in interest rates and servicing value in the fair value of the loan. The mark-to-market adjustments related to LHFS and the associated economic hedges are captured in mortgage production related (loss)/income.
Level 2 LHFS are primarily agency loans which trade in active secondary markets and are priced using current market pricing for similar securities adjusted for servicing, interest rate risk, and credit risk. Non-agency residential mortgages are also included in level 2 LHFS. As disclosed in the tabular level 3 rollforwards, transfers of certain mortgage LHFS into level 3 during the three and nine months ended September 30, 2013 and 2012 were not due to using alternative valuation approaches, but were largely due to borrower defaults or the identification of other loan defects impacting the marketability of the loans.
For residential loans that the Company has elected to carry at fair value, the Company considers the component of the fair value changes due to instrument-specific credit risk, which is intended to be an approximation of the fair value change attributable to changes in borrower-specific credit risk. For the three and nine months ended September 30, 2013, the Company recognized gains of $1 million and losses of $1 million, respectively, in fair value attributable to borrower-specific credit risk in the Consolidated Statements of Income. For the three and nine months ended September 30, 2012, the Company recognized gains in the Consolidated Statements of Income of $5 million and $7 million, respectively, due to changes in fair value attributable to borrower-specific credit risk. In addition to borrower-specific credit risk, there are other, more significant, variables that drive changes in the fair values of the loans, including interest rates and general conditions in the principal markets for the loans.
Corporate and other LHFS
As discussed in Note 7, “Certain Transfers of Financial Assets and Variable Interest Entities,” the Company has determined that it is the primary beneficiary of a CLO vehicle, which resulted in the Company consolidating the loans of that vehicle. Because the CLO trades its loans from time to time and to fairly present the economics of the CLO, the Company elected to carry the loans of the CLO at fair value. For the three and nine months ended September 30, 2013, the Company recognized gains of $1 million and $2 million, respectively, due to changes in fair value attributable to borrower-specific credit risk in the Consolidated Statements of Income, compared to gains of $5 million and $10 million for the same periods in 2012, respectively. The Company obtains fair value estimates for substantially all of these loans using a third party valuation service that is broadly used by market participants. While most of the loans are traded in the markets, the Company does not believe the loans qualify as level 1 instruments, as the volume and level of trading activity is subject to variability and the loans are not exchange-traded, such that the Company believes that level 2 is more representative of the general market activity for the loans.
LHFI
Level 3 LHFI predominantly includes mortgage loans that are deemed not marketable, largely due to the identification of loan defects. The Company values these loans using a discounted cash flow approach based on assumptions that are generally not observable in the current markets, such as prepayment speeds, default rates, loss severity rates, and discount rates. These assumptions have an inverse relationship to the overall fair value. Level 3 LHFI also includes mortgage loans that are valued using collateral based pricing. Changes in the applicable housing price index since the time of the loan origination are considered and applied to the loan's collateral value. An additional discount representing the return that a buyer would require is also considered in the overall fair value.

Other Intangible Assets
Other intangible assets that the Company records at fair value are the Company’s MSR assets. The fair values of MSRs are determined by projecting cash flows, which are then discounted to estimate an expected fair value. The fair values of MSRs are impacted by a variety of factors, including prepayment assumptions, discount rates, delinquency rates, contractually specified servicing fees, servicing costs, and underlying portfolio characteristics. For additional information, see Note 6, "Goodwill and Other Intangible Assets." The underlying assumptions and estimated values are corroborated by values received from independent third parties based on their review of the servicing portfolio. Because these inputs are not transparent in market trades, MSRs are considered to be level 3 assets.
Other Assets/Liabilities, net
The Company’s other assets/liabilities that are carried at fair value on a recurring basis include IRLCs that satisfy the criteria to be treated as derivative financial instruments, derivative financial instruments that are used by the Company to economically hedge certain loans and MSRs, contingent consideration, and the derivative that the Company obtained as a result of its sale of Visa Class B shares.
The fair value of IRLCs on residential LHFS, while based on interest rates observable in the market, is highly dependent on the ultimate closing of the loans. These “pull-through” rates are based on the Company’s historical data and reflect the Company’s best estimate of the likelihood that a commitment will ultimately result in a closed loan. As pull-through rates increase, the fair value of IRLCs also increases. Servicing value is included in the fair value of IRLCs, and the fair value of servicing is determined by projecting cash flows which are then discounted to estimate an expected fair value. The fair value of servicing is impacted by a variety of factors, including prepayment assumptions, discount rates, delinquency rates, contractually specified servicing fees, servicing costs, and underlying portfolio characteristics. Because these inputs are not transparent in market trades, IRLCs are considered to be level 3 assets.
During the three and nine months ended September 30, 2013, the Company transferred $50 million and $159 million of IRLCs out of level 3 as the associated loans were closed, compared to $269 million and $659 million during the same periods in 2012, respectively.
The Company is exposed to interest rate risk associated with MSRs, IRLCs, residential LHFS, and residential LHFI reported at fair value. The Company may hedge these exposures with a combination of derivatives, including MBS forward and option contracts, interest rate swap and swaption contracts, futures contracts, and eurodollar options. The Company estimates the fair values of such derivative instruments consistent with the methodologies discussed herein under “Derivative contracts” and accordingly these derivatives are considered to be level 2 instruments.
During the second quarter of 2009, in connection with its sale of Visa Class B shares, the Company entered into a derivative contract whereby the ultimate cash payments received or paid, if any, under the contract are based on the ultimate resolution of litigation involving Visa. The value of the derivative was estimated based on the Company’s expectations regarding the ultimate resolution of that litigation, which involved a high degree of judgment and subjectivity. Accordingly, the value of the derivative liability is classified as a level 3 instrument. See Note 12, "Reinsurance Arrangements and Guarantees," for a discussion of the valuation assumptions.

Contingent consideration associated with acquisitions is adjusted to fair value until settled. As the assumptions used to measure fair value are based on internal metrics that are not market observable, the earn-out is considered a level 3 liability.

Liabilities
Trading liabilities
Trading liabilities are primarily comprised of derivative contracts, but also include various contracts involving U.S. Treasury securities, equity securities, and corporate and other debt securities that the Company uses in certain of its trading businesses. The Company employs the same valuation methodologies for these derivative contracts and securities as are discussed within the corresponding sections herein under “Trading Assets and Securities Available for Sale.”
Brokered time deposits
The Company has elected to measure certain CDs at fair value. These debt instruments include embedded derivatives that are generally based on underlying equity securities or equity indices, but may be based on other underlyings that may or may not be clearly and closely related to the host debt instrument. The Company elected to carry certain of these instruments at fair value to better align the economics of the CDs with the Company’s risk management strategies. The Company evaluated, on an instrument by instrument basis, whether a new issuance would be carried at fair value.

The Company classified these CDs as level 2 instruments due to the Company’s ability to reasonably measure all significant inputs based on observable market variables. The Company employs a discounted cash flow approach to the host debt component of the CD, based on observable market interest rates for the term of the CD and an estimate of the Bank’s credit risk. For the embedded derivative features, the Company uses the same valuation methodologies as if the derivative were a standalone derivative, as discussed herein under “Derivative contracts.”
For brokered time deposits carried at fair value, the Company estimated credit spreads above LIBOR, based on credit spreads from actual or estimated trading levels of the debt or other relevant market data. For the three and nine months ended September 30, 2013, the Company recognized $1 million and $2 million of losses due to changes in its own credit spread on its brokered time deposits carried at fair value, compared to losses of approximately $5 million and $11 million for the same periods in 2012, respectively.
Long-term debt
The Company has elected to carry at fair value certain fixed rate debt issuances of public debt which are valued by obtaining quotes from a third party pricing service and utilizing broker quotes to corroborate the reasonableness of those marks. Additionally, information from market data of recent observable trades and indications from buy side investors, if available, are taken into consideration as additional support for the value. Due to the availability of this information, the Company determined that the appropriate classification for the debt is level 2. The election to fair value the debt was made to align the accounting for the debt with the accounting for the derivatives without having to account for the debt under hedge accounting, thus avoiding the complex and time consuming fair value hedge accounting requirements.
The Company’s public debt carried at fair value impacts earnings predominantly through changes in the Company’s credit spreads as the Company has entered into derivative financial instruments that economically convert the interest rate on the debt from fixed to floating. The estimated earnings impact from changes in credit spreads above U.S. Treasury rates were losses of $9 million and $27 million for the three and nine months ended September 30, 2013, respectively, and losses of $48 million and $54 million for the three and nine months ended September 30, 2012, respectively.
The Company also carries approximately $284 million of issued securities contained in a consolidated CLO at fair value to recognize the nonrecourse nature of these liabilities to the Company. Specifically, the holders of the liabilities are only paid interest and principal to the extent of the cash flows from the assets of the vehicle, and the Company has no current or future obligations to fund any of the CLO vehicle’s liabilities. The Company classified these securities as level 2, as the primary driver of their fair values are the loans owned by the CLO, which the Company also elected to carry at fair value, as discussed herein under “Loans Held for Sale and Loans Held for Investment – Corporate and other LHFS.”
The valuation technique and range, including weighted average, of the unobservable inputs associated with the Company's level 3 assets and liabilities are as follows:
 
 Level 3 Significant Unobservable Input Assumptions
(Dollars in millions)
Fair value
September 30, 2013 
 
Valuation Technique
 
Unobservable Input 1
 
Range
(weighted average)
Trading assets:
 
 
 
 
 
 
 
CDO/CLO securities

$63

 
Matrix pricing/Discounted cash flow
 
Indicative pricing based on overcollateralization ratio
 
$42-$54 ($48)
 
Estimated collateral losses
 
32-38% (34%)
 
Discount margin
 
5-7% (6%)
ABS
6

 
Matrix pricing
 
Indicative pricing
 
$55 ($55)
Securities AFS:
 
 
 
 
 
 
 
U.S. states and political subdivisions
34

 
Matrix pricing
 
Indicative pricing
 
$80-$108 ($94)
MBS - private
166

 
Third party pricing
 
N/A
 

ABS
21

 
Third party pricing
 
N/A
 

Corporate and other debt securities
5

 
Cost
 
N/A
 

Other equity securities
669

 
Cost
 
N/A
 

Residential LHFS
4

 
Monte Carlo/Discounted cash flow
 
Option adjusted spread
 
250-675 bps (360 bps)
 
Conditional prepayment rate
 
2-11 CPR (6 CPR)
 
Conditional default rate
 
0-4 CDR (1 CDR)
LHFI
308

 
Monte Carlo/Discounted cash flow
 
Option adjusted spread
 
0-675 bps (301 bps)
 
Conditional prepayment rate
 
1-35 CPR (12 CPR)
 
Conditional default rate
 
0-8 CDR (3 CDR)
8

 
Collateral based pricing
 
Appraised value
 
NM 2
MSRs
1,248

 
Discounted cash flow
 
Conditional prepayment rate
 
5-26 CPR (9 CPR)
 
Discount rate
 
8-28% (12%)
Other assets/(liabilities), net 3
46

 
Internal model
 
Pull through rate
 
1-99% (73%)
 
MSR value
 
11-233 bps (104 bps)
(23
)
 
Internal model
 
Loan production volume
 
0-150% (92%)
(3
)
 
Internal model
 
Revenue run rate
 
NM 2
1 For certain assets and liabilities that the Company utilizes third party pricing, the unobservable inputs and their ranges are not reasonably available to the Company, and therefore, have been noted as "N/A."
2 Not meaningful.
3 Input assumptions relate to the Company's IRLCs and the contingent consideration obligations related to acquisitions. Excludes $1 million of Other Liabilities. See Note 12, "Reinsurance Arrangements and Guarantees," for additional information.

 
 Level 3 Significant Unobservable Input Assumptions
(Dollars in millions)
Fair value
December 31, 2012 
 
Valuation Technique
 
Unobservable Input 1
 
Range
(weighted average)
Trading assets:
 
 
 
 
 
 
 
CDO/CLO securities

$52

 
Matrix pricing
 
Indicative pricing based on overcollateralization ratio
 
$33-$45 ($40)
 
Estimated collateral losses
 
34-45% (39%)
ABS
5

 
Matrix pricing
 
Indicative pricing
 
$45 ($45)
Corporate and other debt securities
1

 
Third party pricing
 
N/A
 
 
Securities AFS:
 
 
 
 
 
 
 
U.S. states and political subdivisions
46

 
Matrix pricing
 
Indicative pricing
 
$72-$115 ($92)
MBS - private
209

 
Third party pricing
 
N/A
 
 
ABS
21

 
Third party pricing
 
N/A
 
 
Corporate and other debt securities
5

 
Cost
 
N/A
 
 
Other equity securities
633

 
Cost
 
N/A
 
 
Residential LHFS
8

 
Monte Carlo/Discounted cash flow
 
Option adjusted spread
 
0-622 bps (251 bps)
 
Conditional prepayment rate
 
5-30 CPR (15 CPR)
 
Conditional default rate
 
0-20 CDR (3.5 CDR)
LHFI
369

 
Monte Carlo/Discounted cash flow
 
Option adjusted spread
 
0-622 bps (251 bps)
 
Conditional prepayment rate
 
5-30 CPR (15 CPR)
 
Conditional default rate
 
0-20 CDR (3.5 CDR)
10

 
Collateral based pricing
 
Appraised value
 
NM 2
MSRs
899

 
Discounted cash flow
 
Conditional prepayment rate
 
6-31 CPR (16 CPR)
 
Discount rate
 
9-28% (11%)
Other assets/(liabilities), net 3
132

 
Internal model
 
Pull through rate
 
9-98% (71%)
 
MSR value
 
6-244 bps (104 bps)
(24
)
 
Internal model
 
Loan production volume
 
0-150% (92%)
(7
)
 
Internal model
 
Revenue run rate
 
NM 2
1 For certain assets and liabilities that the Company utilizes third party pricing, the unobservable inputs and their ranges are not reasonably available to the Company, and therefore, have been noted as "N/A."
2 Not meaningful.
3 Input assumptions relate to the Company's IRLCs and the contingent consideration obligations related to acquisitions. See Note 12, "Reinsurance Arrangements and Guarantees," for additional information.

The following tables present a reconciliation of the beginning and ending balances for fair valued assets and liabilities measured on a recurring basis using significant unobservable inputs (other than MSRs which are disclosed in Note 6, “Goodwill and Other Intangible Assets”). Transfers into and out of the fair value hierarchy levels are assumed to be as of the end of the quarter in which the transfer occurred. None of the transfers into or out of level 3 have been the result of using alternative valuation approaches to estimate fair values. There were no transfers between level 1 and 2 during the three and nine months ended September 30, 2013 and 2012.
 
Fair Value Measurements
Using Significant Unobservable Inputs
 
(Dollars in millions)
Beginning
balance
July 1,
2013
 
Included
in
earnings
 
OCI
 
Purchases
 
Sales
 
Settlements
 
Transfers
to/from
other
balance sheet
line items
 
Transfers
into
Level 3
 
Transfers
out of
Level 3
 
Fair value
September 30,
2013
 
Included in earnings (held at September 30, 2013) 1
 
Trading assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CDO/CLO securities

$63

 

$—

 

$—

 

$—

 

$—

 

$—

 

$—

 

$—

 

$—

 

$63

 

$—

 
ABS
6

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
6

 
—

  
Total trading assets
69

 
—

 
—

  
—

 
—

 
—

 
—

 
—

 
—

 
69

 
—

 
Securities AFS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. states and political subdivisions
37

 
—

 
—

 
—

 
—

 
(3
)
 
—

 
—

 
—

 
34

 
—

  
MBS - private
181

 
—

 
(2
)
 
—

 
—

 
(13
)
 
—

 
—

 
—

 
166

 
—

  
ABS
22

 
—

 
—

 
—

 
—

 
(1
)
 
—

 
—

 
—

 
21

 
—

  
Corporate and other debt securities
2

 
—

 
—

 
4

 
—

 
(1
)
 
—

 
—

 
—

 
5

 
—

  
Other equity securities
737

 
—

 
—

 
—

 
—

 
(68
)
 
—

 
—

 
—

 
669

 
—

  
Total securities AFS
979

 
—

 
(2
)
6 
4

 
—

 
(86
)
 
—

 
—

 
—

 
895

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential LHFS
8

 
—

 
—

 
—

 
(4
)
 
—

 
(5
)
 
6

 
(1
)
 
4

 
—

 
LHFI
339

 
4

4 
—

 
—

 
—

 
(15
)
 
(12
)
 
—

 
—

 
316

 
2

4 
Other assets/(liabilities), net
(81
)
 
46

5 
—

 
—

 
—

 
4

 
50

 
—

 
—

 
19

 
—

  

 
Fair Value Measurements
Using Significant Unobservable Inputs
 
(Dollars in millions)
Beginning
balance
January 1,
2013
 
Included
in
earnings
 
OCI
 
Purchases
 
Sales
 
Settlements
 
Transfers
to/from
other
balance sheet
line items
 
Transfers
into
Level 3
 
Transfers
out of
Level 3
 
Fair value
September 30,
2013
 
Included in earnings (held at September 30, 2013) 1
 
Trading assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CDO/CLO securities

$52

 

$11

 

$—

  

$—

 

$—

 

$—

 

$—

 

$—

 

$—

 

$63

 

$11

 
ABS
5

 
1

  
—

  
—

 
—

 
—

 
—

 
—

 
—

 
6

 
1

  
Corporate and other debt securities
1

 
—

  
—

  
—

 
—

 
(1
)
 
—

 
—

 
—

 
—

 
—

 
Total trading assets
58

 
12

2 
—

  
—

 
—

 
(1
)
 
—

 
—

 
—

 
69

 
12

2 
Securities AFS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. states and political subdivisions
46

 
—

  
2

  
—

 
(7
)
 
(7
)
 
—

 
—

 
—

 
34

 
—

  
MBS - private
209

 
—

  
(5
)
  
—

 
—

 
(38
)
 
—

 
—

 
—

 
166

 
—

  
ABS
21

 
(1
)
  
3

  
—

 
—

 
(2
)
 
—

 
—

 
—

 
21

 
(1
)
  
Corporate and other debt securities
5

 
—

  
—

  
4

 
—

 
(4
)
 
—

 
—

 
—

 
5

 
—

  
Other equity securities
633

 
—

  
—

  
110

 
—

 
(74
)
 
—

 
—

 
—

 
669

 
—

  
Total securities AFS
914

 
(1
)
3 
—

 
114

 
(7
)
 
(125
)
 
—

 
—

 
—

 
895

 
(1
)
3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential LHFS
8

 
—

 
—

  
—

 
(20
)
 
—

 
(8
)
 
28

 
(4
)
 
4

 
—

 
LHFI
379

 
(2
)
4 
—

  
—

 
—

 
(47
)
 
(14
)
 
—

 
—

 
316

 
(8
)
4 
Other assets/(liabilities), net
101

 
72

5 
—

  
—

 
—

 
5

 
(159
)
 
—

 
—

 
19

 
1

5 
1 Change in unrealized gains/(losses) included in earnings during the period related to financial assets still held at September 30, 2013.
2 Amounts included in earnings are recognized in trading income.
3 Amounts included in earnings are recognized in net securities gains.
4 Amounts are generally included in mortgage production related (loss)/income; however, the mark on certain fair value loans is included in trading income.
5 Amounts included in earnings are net of issuances, fair value changes, and expirations and are recognized in mortgage production related (loss)/income.
6 Amount recognized in OCI is recognized in change in net unrealized gains on securities, net of tax.



 
Fair Value Measurements
Using Significant Unobservable Inputs
 
(Dollars in millions)
Beginning
balance
July 1,
2012
 
Included
in
earnings
 
OCI
 
Sales
 
Settlements
 
Transfers
to/from other
balance sheet
line items
 
Transfers
into
Level 3
 
Fair value
September 30,
2012
 
Included in earnings (held at September
  30, 2012) 1
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CDO/CLO securities

$43

 

$4

 

$—

 

$—

 

$—

 

$—

 

$—

 

$47

 

$4

 
ABS
5

 
—

 
—

 
—

 
—

 
—

 
—

 
5

 
—

  
Corporate and other debt securities
1

 
—

 
—

 
—

 
—

 
—

 
—

 
1

 
—

 
Total trading assets
49

 
4

2 
—

 
—

 
—

 
—

 
—

 
53

 
4

2 
Securities AFS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. states and political subdivisions
55

 
—

 
1

 
—

 
(5
)
 
—

 
—

 
51

 
—

  
MBS - private
208

 
(3
)
 
21

 
—

 
(9
)
 
—

 
—

 
217

 
(3
)
  
ABS
17

 
—

 
1

 
—

 
—

 
—

 
—

 
18

 
—

  
Corporate and other debt securities
5

 
—

 
—

 
—

 
—

 
—

 
—

 
5

 
—

  
Other equity securities
857

 
—

 
—

 
—

 
(22
)
 
—

 
—

 
835

 
—

  
Total securities AFS
1,142

 
(3
)
3 
23

6 
—

 
(36
)
 
—

 
—

 
1,126

 
(3
)
3 
Residential LHFS
2

 
—

 
—

 
(5
)
 
—

 
2

 
5

 
4

 
—

 
LHFI
406

 
3

4 
—

 
—

 
(14
)
 
(6
)
 
1

 
390

 
—

 
Other assets/(liabilities), net
101

 
331

5 
—

 
—

 
3

 
(269
)
 
—

 
166

 
—

 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts
(349
)
 
(305
)
3 
355

7 
—

 
299

 
—

 
—

 
—

 
—

 

 
Fair Value Measurements
Using Significant Unobservable Inputs
 
(Dollars in millions)
Beginning
balance
January 1,
2012
 
Included
in
earnings
 
OCI
 
Purchases
 
Sales
 
Settlements
 
Transfers
to/from other
balance sheet
line items
 
Transfers
into
Level 3
 
Transfers
out of
Level 3
 
Fair value
September 30,
2012
 
Included in earnings (held at September
 30, 2012) 1
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CDO/CLO securities

$43

 

$4

 

$—

 

$—

 

$—

 

$—

 

$—

 

$—

 

$—

 

$47

 

$4

 
ABS
5

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
5

 
—

  
Corporate and other debt securities
1

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
1

 
—

  
Total trading assets
49

 
4

2 
—

 
—

  
—

 
—

 
—

 
—

 
—

 
53

 
4

2 
Securities AFS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. states and political subdivisions
58

 
—

 
—

 
—

 
—

 
(7
)
 
—

 
—

 
—

 
51

 
—

  
MBS - private
221

 
(7
)
 
35

 
—

 
—

 
(32
)
 
—

 
—

 
—

 
217

 
(7
)
  
ABS
16

 
—

 
4

 
—

 
—

 
(2
)
 
—

 
—

 
—

 
18

 
—

  
Corporate and other debt securities
5

 
—

 
—

 
2

 
—

 
(2
)
 
—

 
—

 
—

 
5

 
—

  
Other equity securities
741

 
—

 
—

 
163

 
—

 
(69
)
 
—

 
—

 
—

 
835

 
—

  
Total securities AFS
1,041

 
(7
)
3 
39

6 
165

  
—

 
(112
)
 
—

 
—

 
—

 
1,126

 
(7
)
3 
Residential LHFS
1

 
—

 
—

 
—

 
(6
)
 
—

 
4

 
10

 
(5
)
 
4

 
—

 
LHFI
433

 
4

4 
—

 
—

 
—

 
(40
)
 
(10
)
 
4

 
(1
)
 
390

 
1

4 
Other assets/(liabilities), net
62

 
769

5 
—

 
(31
)
 
—

 
25

 
(659
)
 
—

 
—

 
166

 
—

 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts
(189
)
 
(304
)
3 
194

7 
—

 
—

 
299

 
—

 
—

 
—

 
—

 
—

 
1 Change in unrealized gains/(losses) included in earnings for the period related to financial assets still held at September 30, 2012.
2 Amounts included in earnings are recognized in trading income.
3 Amounts included in earnings are generally recognized in net securities gains; however, any related hedge ineffectiveness is recognized in trading income.
4 Amounts are generally included in mortgage production related (loss)/income; however, the mark on certain fair value loans is included in trading income.
5 Amounts included in earnings are net of issuances, fair value changes, and expirations and are recognized in mortgage production related (loss)/income.
6 Amounts recognized in OCI are recognized in change in net unrealized gains on securities, net of tax.
7 Amounts recognized in OCI are recognized in change in net unrealized gains on derivatives, net of tax, and are the effective portions of the cash flow hedges related to the Company’s probable forecasted sale of its shares of Coke common stock as discussed in Note 16, “Derivative Financial Instruments,” to the Consolidated Financial Statements in the 2012 Annual Report on Form 10-K.







Non-recurring Fair Value Measurements
The following tables present those assets measured at fair value on a non-recurring basis at September 30, 2013 and December 31, 2012, respectively. The changes in fair value when comparing balances at September 30, 2013 to those at December 31, 2012, generally result from the application of LOCOM or through write-downs of individual assets. The table does not reflect the change in fair value attributable to any related economic hedges the Company may have used to mitigate the interest rate risk associated with LHFS and MSRs.
(Dollars in millions)
September 30, 2013
 
Quoted Prices in
Active Markets
for Identical
Assets/Liabilities
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Gains/(Losses) for
the Three
Months Ended
September 30, 2013
 
Gains/(Losses) for
the Nine
Months Ended
September 30, 2013
LHFS

$33

 

$—

 

$33

 

$—

 

($3
)
 

($10
)
LHFI
71

 
—

 
—

 
71

 
—

 
—

OREO
56

 
—

 
3

 
53

 
(9
)
 
(16
)
Affordable Housing
69

 
—

 
—

 
69

 
9

 
9

Other Assets
224

 
—

 
224

 
—

 
(38
)
 
(39
)
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in millions)
December 31, 2012
 
Quoted Prices in
Active Markets
for Identical
Assets/Liabilities
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Losses for the
Year Ended
December 31, 2012
 

LHFS

$65

 

$—

 

$65

 

$—

 

$—

 
 
LHFI
308

 
—

 
—

 
308

 
(79
)
 
 
OREO
264

 
—

 
205

 
59

 
(48
)
 
 
Affordable Housing
82

 
—

 
—

 
82

 
(96
)
 
 
Other Assets
65

 
—

 
42

 
23

 
(13
)
 
 

The following is a discussion of the valuation techniques and inputs used in developing fair value measurements for assets classified as level 2 or 3 that are measured at fair value on a non-recurring basis, as determined by the nature and risks of the instrument.
Loans Held for Sale
At September 30, 2013 and December 31, 2012, level 2 LHFS consisted primarily of agency and non-agency residential mortgages, which were measured using observable collateral valuations, and corporate loans that are accounted for at LOCOM. These loans were valued consistent with the methodology discussed in the Recurring Fair Value Measurement section of this footnote.
During the nine months ended September 30, 2013, the Company transferred $22 million of residential mortgage NPLs to LHFS, as the Company elected to actively market these loans for sale. These loans were predominantly reported at amortized cost prior to transferring to LHFS; however, a portion of the NPLs was carried at fair value. As a result of transferring the loans to LHFS, the Company recognized a $3 million charge-off to reflect the loans' estimated market value. These transferred NPL loans were sold at approximately their carrying value during the nine months ended September 30, 2013. In conjunction with the sale of these residential mortgage NPLs, the Company also sold an additional $39 million of residential mortgage NPLs which had either been transferred to LHFS in a prior period or repurchased into LHFS directly. These additional loans were sold at a gain of approximately $5 million.
During the nine months ended September 30, 2012, the Company transferred $563 million of residential mortgage NPLs to LHFS, as the Company elected to actively market these loans for sale. These loans were predominantly reported at amortized cost prior to transferring to LHFS; however, a portion of the NPLs was carried at fair value. As a result of transferring the loans to LHFS, the Company recognized a $171 million charge-off to reflect the loans' estimated market value. Of these transferred loans, $366 million were sold at a gain of $4 million during the nine months ended September 30, 2012, $16 million remained in LHFS, $7 million were returned to LHFI as they were no longer deemed marketable for sale, and the remainder were removed as a result of various loss events.
Loans Held for Investment
At September 30, 2013, LHFI consisted primarily of consumer and residential real estate loans discharged in Chapter 7 bankruptcy that had not been reaffirmed by the borrower, as well as nonperforming CRE loans for which specific reserves have been recognized. As these loans have been classified as nonperforming, cash proceeds from the sale of the underlying collateral is the expected source of repayment for a majority of these loans. Accordingly, the fair value of these loans is derived from the estimated fair value of the underlying collateral, incorporating market data if available. At December 31, 2012, LHFI also consisted primarily of residential real estate loans discharged in Chapter 7 bankruptcy that had not been reaffirmed by the borrower and nonperforming CRE loans for which specific reserves have been recognized. A majority of these Chapter 7 bankruptcy loans were returned to accruing status during the nine months ended September 30, 2013 as a result of exhibiting at least six months of payment performance following discharge by the bankruptcy court. There were no gains or losses for the three and nine months ended September 30, 2013 and 2012 as the charge-offs related to these loans are a component of the ALLL. Due to the lack of market data for similar assets, all of these loans are considered level 3.
OREO
OREO is measured at the lower of cost or its fair value less costs to sell. Level 2 OREO consists primarily of residential homes, commercial properties, and vacant lots and land for which binding purchase agreements exist. Level 3 OREO consists primarily of residential homes, commercial properties, and vacant lots and land for which initial valuations are based on property-specific appraisals, broker pricing opinions, or other available market information. Due to the lower dollar value per property and geographic dispersion of the portfolio, certain vacant lots and land properties, approximately 10% of level 3 OREO at September 30, 2013, are re-evaluated using a pooled approach, which applies geographic factors to adjust carrying values for estimated further declines in value. Land and lots have proven to be the most challenging asset class to accurately value due in part to the low balance per property composition of the asset class. The pooled discount methodology provides a means to reserve for losses across a broad band of assets rather than rely on potentially unreliable asset-specific valuations. The pooled discount methodology is applied to land and lot assets that have valuations older than six months. The Company's independent internal valuation group determines the discounts to be applied and the discount percentages are segregated by state and by asset class (residential or commercial). The range of discount percentages applied to residential properties was 35% to 55% with a weighted average of 45%. The range of discount percentages applied to commercial properties was 15% to 40% with a weighted average of 23%. The discount percentages reflect the general market decline/increase in a particular state for a particular asset class and are determined by examining various valuation sources, including but not limited to, recent appraisals or sales prices of similar assets within each state.
Affordable Housing
The Company evaluates its consolidated affordable housing properties for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment is recognized if the carrying amount of the property exceeds its fair value. Fair value measurements for affordable housing properties are derived from internal analyses using market assumptions if available. Significant assumptions utilized in these analyses include cash flows, market capitalization rates, and tax credit market pricing. Due to the lack of comparable sales in the marketplace, these valuations are considered level 3. During 2012, the Company decided to dispose of certain consolidated affordable housing properties, and accordingly, recorded an impairment charge to adjust the carrying values of these properties to their estimated net realizable values obtained from a third party broker opinion. During the three and nine months ended September 30, 2012, the Company recognized impairment charges of $96 million on affordable housing properties as a result of the Company's decision to actively market certain consolidated affordable housing properties for sale. During the three and nine months ended September 30, 2013, the Company recognized gains of $9 million on these for sale affordable housing properties as a result of increased estimated net realizable values.
Other Assets
Other assets consist of private equity investments, other repossessed assets, assets under operating leases where the Company is the lessor, and land held for sale.
Investments in private equity partnerships are valued based on the estimated expected remaining cash flows to be received from these assets discounted at a market rate that is commensurate with their risk profile. Based on the valuation methodology and the lack of observable inputs, these investments are considered level 3. During the first quarter of 2013, the Company sold its remaining investments in private equity partnerships at prices approximating their carrying value. No impairment charges were recognized on private equity partnership investments during the three and nine months ended September 30, 2013 and 2012.
Other repossessed assets consist of repossessed personal property that is measured at fair value less cost to sell. These assets are considered level 2 as their fair value is determined based on market comparables and broker opinions. During the three and nine months ended September 30, 2013, the Company recognized impairment charges of $11 million on other repossessed assets. Impairment charges of $1 million and $2 million were recognized on other repossessed assets during the three and nine months ended September 30, 2012, respectively.
The Company monitors the fair value of assets under operating leases where the Company is the lessor and recognizes impairment to the extent the carrying value is not recoverable and the fair value is less than its carrying value. Fair value is determined using collateral specific pricing digests, external appraisals, broker opinions, and recent sales data from industry equipment dealers as well as the discounted cash flows derived from the underlying lease agreement. As market data for similar assets and lease arrangements is available and used in the valuation, these assets are considered level 2. During the three and nine months ended September 30, 2013, the Company recognized impairment charges of $27 million and $28 million, respectively, attributable to the fair value of various personal property under operating leases. No impairment charges were recognized during the three months ended September 30, 2012, while an immaterial amount of impairment charges were recognized attributable to the fair value of various personal property under operating leases during the nine months ended September 30, 2012.
Land held for sale is measured at the lesser of carrying value or fair value less cost to sell. The fair value of the land is determined using broker opinions, and based on the lack of observable inputs, the land is considered level 3. No impairment charges were recognized on the land during the three and nine months ended September 30, 2013. During the three and nine months ended September 30, 2012, the Company recognized a $7 million impairment charge on the land.

Fair Value of Financial Instruments
The carrying amounts and fair values of the Company’s financial instruments are as follows:
 
 
September 30, 2013
 
Fair Value Measurement Using
 
(Dollars in millions)
Carrying
Amount
 
Fair
Value
 
Quoted Prices in
Active Markets
for Identical
Assets/Liabilities
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Financial assets:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents

$4,286

 

$4,286

 

$4,286

 

$—

 

$—

(a) 
Trading assets
5,731

 
5,731

 
1,008

 
4,654

 
69

(b) 
Securities AFS
22,626

 
22,626

 
878

 
20,853

 
895

(b) 
LHFS
2,462

 
2,462

 
—

 
2,458

 
4

(c) 
LHFI, net
122,269

 
118,165

 
—

 
3,046

 
115,119

(d)
Financial liabilities:
 
 
 
 
 
 
 
 
 
 
Consumer and commercial deposits
126,861

 
126,930

 
—

 
126,930

 
—

(e) 
Brokered time deposits
2,022

 
2,022

 
—

 
2,022

 
—

(f) 
Short-term borrowings
6,987

 
6,987

 
—

 
6,987

 
—

(f) 
Long-term debt
9,985

 
9,970

 
—

 
9,415

 
555

(f) 
Trading liabilities
1,264

 
1,264

 
1,010

 
254

 
—

(b) 

 
December 31, 2012
 
Fair Value Measurement Using
 
(Dollars in millions)
Carrying
Amount
 
Fair
Value
 
Quoted Prices in
Active Markets
for Identical
Assets/Liabilities
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Financial assets:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents

$8,257

 

$8,257

 

$8,257

 

$—

 

$—

(a) 
Trading assets
6,049

 
6,049

 
394

 
5,597

 
58

(b) 
Securities AFS
21,953

 
21,953

 
291

 
20,748

 
914

(b) 
LHFS
3,399

 
3,399

 
—

 
3,375

 
24

(c) 
LHFI, net
119,296

 
115,690

 
—

 
4,041

 
111,649

(d)
Financial liabilities:
 
 
 
 
 
 
 
 
 
 
Consumer and commercial deposits
130,180

 
130,449

 
—

 
130,449

 
—

(e) 
Brokered time deposits
2,136

 
2,164

 
—

 
2,164

 
—

(f) 
Short-term borrowings
5,494

 
5,494

 
—

 
5,494

 
—

(f) 
Long-term debt
9,357

 
9,413

 
—

 
8,829

 
584

(f) 
Trading liabilities
1,161

 
1,161

 
591

 
570

 
—

(b) 

The following methods and assumptions were used by the Company in estimating the fair value of financial instruments:
(a)
Cash and cash equivalents are valued at their carrying amounts reported in the balance sheet, which are reasonable estimates of fair value due to the relatively short period to maturity of the instruments.
(b)
Securities AFS, trading assets, and trading liabilities that are classified as level 1 are valued based on quoted market prices. For those instruments classified as level 2 or 3, refer to the respective valuation discussions within this footnote.
(c)
LHFS are generally valued based on observable current market prices or, if quoted market prices are not available, on quoted market prices of similar instruments. Refer to the LHFS section within this footnote for further discussion of the LHFS carried at fair value. In instances for which significant valuation assumptions are not readily observable in the market, instruments are valued based on the best available data to approximate fair value. This data may be internally-developed and considers risk premiums that a market participant would require under then-current market conditions.
(d)
LHFI fair values are based on a hypothetical exit price, which does not represent the estimated intrinsic value of the loan if held for investment. The assumptions used are expected to approximate those that a market participant purchasing the loans would use to value the loans, including a market risk premium and liquidity discount. Estimating the fair value of the loan portfolio when loan sales and trading markets are illiquid, or for certain loan types, nonexistent, requires significant judgment. Therefore, the estimated fair value can vary significantly depending on a market participant’s ultimate considerations and assumptions. The final value yields a market participant’s expected return on investment that is indicative of the current market conditions, but it does not take into consideration the Company’s estimated value from continuing to hold these loans or its lack of willingness to transact at these estimated values.
The Company generally estimated fair value for LHFI based on estimated future cash flows discounted, initially, at current origination rates for loans with similar terms and credit quality, which derived an estimated value of 100% and 101% on the loan portfolio’s net carrying value at September 30, 2013 and December 31, 2012, respectively. The value derived from origination rates likely does not represent an exit price; therefore, an incremental market risk and liquidity discount was subtracted from the initial value at September 30, 2013 and December 31, 2012, respectively. The discounted value is a function of a market participant’s required yield in the current environment and is not a reflection of the expected cumulative losses on the loans. Loan prepayments are used to adjust future cash flows based on historical experience and prepayment model forecasts. The value of related accrued interest on loans approximates fair value; however, it is not included in the carrying amount or fair value of loans. The value of long-term customer relationships is not permitted under current U.S. GAAP to be included in the estimated fair value.
(e)
Deposit liabilities with no defined maturity such as DDAs, NOW/money market accounts, and savings accounts have a fair value equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for CDs are estimated using a discounted cash flow measurement that applies current interest rates to a schedule of aggregated expected maturities. The assumptions used in the discounted cash flow analysis are expected to approximate those that market participants would use in valuing deposits. The value of long-term relationships with depositors is not taken into account in estimating fair values.
(f)
Fair values for foreign deposits, certain brokered time deposits, short-term borrowings, and certain long-term debt are based on quoted market prices for similar instruments or estimated using discounted cash flow analysis and the Company’s current incremental borrowing rates for similar types of instruments. For brokered time deposits and long-term debt that the Company carries at fair value, refer to the respective valuation sections within this footnote. For level 3 debt, the terms are unique in nature or there are otherwise no similar instruments than can be used to value the instrument without using significant unobservable assumptions. In this situation, we look at current borrowing rates along with the collateral levels that secure the debt in determining an appropriate fair value adjustment.

Unfunded loan commitments and letters of credit are not included in the table above. At September 30, 2013 and December 31, 2012, the Company had $46.2 billion and $42.7 billion, respectively, of unfunded commercial loan commitments and letters of credit. A reasonable estimate of the fair value of these instruments is the carrying value of deferred fees plus the related unfunded commitments reserve, which was a combined $53 million and $49 million at September 30, 2013 and December 31, 2012, respectively. No active trading market exists for these instruments, and the estimated fair value does not include any value associated with the borrower relationship. The Company does not estimate the fair values of consumer unfunded lending commitments which can generally be canceled by providing notice to the borrower.
Contingencies
Contingencies
NOTE 14 – CONTINGENCIES
Litigation and Regulatory Matters
In the ordinary course of business, the Company and its subsidiaries are parties to numerous civil claims and lawsuits and subject to regulatory examinations, investigations, and requests for information. Some of these matters involve claims for substantial amounts. The Company’s experience has shown that the damages alleged by plaintiffs or claimants are often overstated, based on novel or unsubstantiated legal theories, unsupported by facts, and/or bear no relation to the ultimate award that a court might grant. Additionally, the outcome of litigation and regulatory matters and the timing of ultimate resolution are inherently difficult to predict. Because of these factors, the Company typically cannot provide a meaningful estimate of the range of reasonably possible outcomes of claims in the aggregate or by individual claim. However, on a case-by-case basis, reserves are established for those legal claims in which it is probable that a loss will be incurred and the amount of such loss can be reasonably estimated. The actual costs of resolving these claims may be substantially higher or lower than the amounts reserved.
For a limited number of legal matters in which the Company is involved, the Company is able to estimate a range of reasonably possible losses. For other matters for which a loss is probable or reasonably possible, such an estimate is not possible. For those matters where a loss is both estimable and reasonably possible, management currently estimates the aggregate range of reasonably possible losses as $0 to approximately $250 million in excess of the reserves, if any, related to those matters. This estimated range of reasonably possible losses represents the estimated possible losses over the life of such legal matters, which may span a currently indeterminable number of years, and is based on information currently available at September 30, 2013. The matters underlying the estimated range will change from time to time, and actual results may vary significantly from this estimate. Those matters for which an estimate is not possible are not included within this estimated range; therefore, this estimated range does not represent the Company’s maximum loss exposure. Based on current knowledge, it is the opinion of management that liabilities arising from legal claims in excess of the amounts currently reserved, if any, will not have a material impact to the Company’s financial condition, results of operations, or cash flows. However, in light of the significant uncertainties involved in these matters and the large or indeterminate damages sought in some of these matters, an adverse outcome in one or more of these matters could be material to the Company’s results or cash flows for any given reporting period.

The following is a description of certain litigation and regulatory matters:
Interchange and Related Litigation
Card Association Antitrust Litigation
The Company is a defendant, along with Visa U.S.A. and MasterCard International, as well as several other banks, in several antitrust lawsuits challenging their practices. For a discussion regarding the Company’s involvement in this litigation matter, see Note 12, “Reinsurance Arrangements and Guarantees.”

In re ATM Fee Antitrust Litigation
The Company was a defendant in a number of antitrust actions that were consolidated in federal court in San Francisco, California under the name In re ATM Fee Antitrust Litigation, Master File No. C04-2676 CR13. In these actions, Plaintiffs, on behalf of a class, asserted that Concord EFS and a number of financial institutions unlawfully fixed the interchange fee for participants in the Star ATM Network. Plaintiffs claimed that Defendants’ conduct was illegal under Section 1 of the Sherman Act. Plaintiffs initially asserted the Defendants’ conduct was illegal per se. In August 2007, Concord and the bank defendants filed motions for summary judgment on Plaintiffs’ per se claim and, in March 2008, the Court granted the motions on the ground that Defendants’ conduct in setting an interchange fee must be analyzed under the rule of reason. The Court certified this question for interlocutory appeal, and the Court of Appeals for the Ninth Circuit rejected Plaintiffs’ petition for permission to appeal on August 13, 2008. Plaintiffs subsequently filed a Second Amended Complaint in which they asserted a rule of reason claim. This complaint was dismissed by the Court as well, but Plaintiffs were given leave to file another amended complaint. Plaintiffs filed yet another complaint and Defendants moved to dismiss the same. The Court granted this motion in part by dismissing one of the Plaintiffs' two claims but denied the motion as to one claim. On September 16, 2010, the Court granted the Defendants’ motion for summary judgment as to the remaining claim on the grounds that Plaintiffs lack standing to assert that claim. Plaintiffs filed an appeal of this decision with the Ninth Circuit Court of Appeals and the Ninth Circuit affirmed the District Court's decision. Plaintiffs filed a motion for rehearing en banc; however, this motion was denied. Plaintiffs filed a petition for a writ of certiorari with the United States Supreme Court in July 2013 and this petition was denied in October 2013.

Overdraft Fee Cases
The Company has been named as a defendant in three putative class actions relating to the imposition of overdraft fees on customer accounts.
The first such case, Buffington et al. v. SunTrust Banks, Inc. et al. was filed in Fulton County Superior Court on May 6, 2009. This action was removed to the U.S. District Court for the Northern District of Georgia, Atlanta Division on June 10, 2009, and was transferred to the U.S. District Court for the Southern District of Florida for inclusion in Multi-District Litigation Case No. 2036 on December 1, 2009. Plaintiffs asserted claims for breach of contract, conversion, unconscionability, and unjust enrichment for alleged injuries they suffered as a result of the method of posting order used by the Company, which allegedly resulted in overdraft fees being assessed to their joint checking account, and purport to bring their action on behalf of a putative class of “all SunTrust Bank account holders who incurred an overdraft charge despite their account having a sufficient balance of actual funds to cover all debits that have been submitted to the bank for payment,” as well as “all SunTrust account holders who incurred one or more overdraft charges based on SunTrust Bank's reordering of charges.” Plaintiffs sought restitution, damages, expenses of litigation, attorneys' fees, and other relief deemed equitable by the Court. The Company filed a Motion to Dismiss and Motion to Compel Arbitration and both motions were denied. The denial of the motion to compel arbitration was appealed to the Eleventh Circuit Court of Appeals. The Eleventh Circuit remanded this matter back to the District Court with instructions to the District Court to review its prior ruling in light of the Supreme Court's decision in AT&T Mobility LLC v. Concepcion. The District Court then denied SunTrust's motion to compel arbitration for different reasons. SunTrust appealed this decision to the Eleventh Circuit and, on March 1, 2012, the Eleventh Circuit reversed the District Court's decision and ordered that SunTrust's Motion to Compel Arbitration be granted. Plaintiffs filed a petition for rehearing or rehearing en banc, which was denied. Plaintiffs filed a petition for a writ of certiorari to the U.S. Supreme Court, which also was denied. This matter is now closed.

The second of these cases, Bickerstaff v. SunTrust Bank, was filed in the Fulton County State Court on July 12, 2010, and an amended complaint was filed on August 9, 2010. Plaintiff asserts that all overdraft fees charged to his account which related to debit card and ATM transactions are actually interest charges and therefore subject to the usury laws of Georgia. Plaintiff has brought claims for violations of civil and criminal usury laws, conversion, and money had and received, and purports to bring the action on behalf of all Georgia citizens who have incurred such overdraft fees within the last four years where the overdraft fee resulted in an interest rate being charged in excess of the usury rate. SunTrust filed a motion to compel arbitration and on March 16, 2012, the Court entered an order holding that SunTrust's arbitration provision is enforceable but that the named plaintiff in the case had opted out of that provision pursuant to its terms. The Court explicitly stated that it was not ruling at that time on the question of whether the named plaintiff could have opted out for the putative class members. SunTrust filed an appeal of this decision, but this appeal was dismissed based on a finding that the appeal was prematurely granted. On April 8, 2013, the plaintiff filed a motion for class certification and that motion is pending.

The third of these cases, Byrd v. SunTrust Bank, was filed on April 23, 2012, in the United States District Court for the Western District of Tennessee. Plaintiff asserted claims for breach of contract, conversion, unconscionability, and unjust enrichment for alleged injuries suffered as a result of the method of posting order used by SunTrust, which allegedly resulted in overdraft fees being assessed to his checking account, and purported to bring this action on behalf of a putative class of “all SunTrust Bank account holders who incurred an overdraft charge despite their account having a sufficient balance of actual funds to cover all debits that have been submitted to the bank for payment,” as well as “all SunTrust account holders who incurred one or more overdraft charges based on SunTrust Bank’s reordering of charges.” Plaintiff seeks restitution, damages, expenses of litigation, attorneys’ fees, and other relief deemed equitable by the Court. The District Court granted SunTrust's motion to compel arbitration in July 2013 and the case subsequently settled.

SunTrust Mortgage, Inc. v. United Guaranty Residential Insurance Company of North Carolina
STM filed suit in the Eastern District of Virginia in July 2009 against United Guaranty Residential Insurance Company of North Carolina (“UGRIC”) seeking payment of denied mortgage insurance claims on second lien mortgages. STM's claims were in two counts. Count One involved a common reason for denial of claims by UGRIC for a group of loans. Count Two involved a group of loans with individualized reasons for the claim denials asserted by UGRIC. UGRIC counterclaimed for declaratory relief involving interpretation of the insurance policy involving certain caps on the amount of claims covered and whether STM was obligated to continue to pay premiums after any caps were met. The Court granted STM's motion for summary judgment as to liability on Count One and, after a trial on damages, awarded STM $34 million along with $6 million in prejudgment interest on August 19, 2011. The Court stayed Count Two pending final resolution of Count One. On September 13, 2011, the Court awarded an additional $5 million to the Count One judgment for fees on certain issues. On UGRIC's counterclaim, the Court agreed that UGRIC's interpretation was correct regarding STM's continued obligations to pay premiums in the future after coverage caps are met. However, on August 19, 2011, the Court found for STM on its affirmative defense that UGRIC can no longer enforce the contract due to its prior breaches and, consequently, denied UGRIC's request for a declaration that it was entitled to continue to collect premiums after caps are met.
On February 1, 2013, the Fourth Circuit Court of Appeals (i) upheld the judgment to STM of $45 million ($34 million in claims, $6 million in interest, and $5 million in additional fees); and (ii) vacated the ruling in STM's favor regarding the defense STM asserted to UGRIC's claim that STM owes continued premium after the caps are reached. On February 15, 2013, UGRIC filed a motion asking the Fourth Circuit Court of Appeals to re-hear its appeal. This request was denied on March 4, 2013. The case has returned to the District Court for further proceedings regarding STM's defense to UGRIC's claims for additional premiums.

Lehman Brothers Holdings, Inc. Litigation
Beginning in October 2008, STRH, along with other underwriters and individuals, were named as defendants in several individual and putative class action complaints filed in the U.S. District Court for the Southern District of New York and state and federal courts in Arkansas, California, Texas, and Washington. Plaintiffs alleged violations of Sections 11 and 12 of the Securities Act of 1933 and/or state law for allegedly false and misleading disclosures in connection with various debt and preferred stock offerings of Lehman Brothers Holdings, Inc. ("Lehman Brothers") and sought unspecified damages. All cases were transferred for coordination to the multi-district litigation captioned In re Lehman Brothers Equity/Debt Securities Litigation pending in the U.S. District Court for the Southern District of New York. Defendants filed a motion to dismiss all claims asserted in the class action. On July 27, 2011, the District Court granted in part and denied in part the motion to dismiss the claims against STRH and the other underwriter defendants in the class action. A settlement with the class plaintiffs was approved by the Court and the class settlement approval process was completed. A number of individual lawsuits and smaller putative class actions remained following the class settlement. STRH has settled two such individual actions. The other individual lawsuits have been dismissed, subject to an appeal in one case and an expected appeal in another.

SunTrust Shareholder Derivative Litigation
On September 9, 2011, the Company and several current and former executives and members of the Board were named in a shareholder derivative action filed in the Superior Court of Fulton County, Georgia, Sharon Benfield v. James M. Wells, III. et al., and on December 19, 2011, the Company and several current and former executives and members of the Board were named as defendants in a separate shareholder derivative action filed in the U.S. District Court for the Northern District of Georgia, Edward Mannato v. James M. Wells, III, et al. The plaintiffs in both of these lawsuits purport to bring their claims on behalf of and for the benefit of the Company. Generally, these lawsuits are substantially overlapping and make very broad allegations of mismanagement of, and misrepresentations about, the Company's exposure to loan losses and the residential real estate market leading up to and during the recent real estate and credit market crises. In both cases, the plaintiffs assert causes of action for breach of fiduciary duty, waste of corporate assets, and unjust enrichment. The Mannato lawsuit arises out of a shareholder demand made of SunTrust in March 2008 that was the subject of an investigation conducted at the direction of a committee of independent members of the Company's Board. This committee concluded that no wrongdoing had occurred and that the interests of the Company's shareholders would not be served by pursuing the claims alleged in the plaintiff's demand. A new committee conducted a new investigation of the allegations raised in the lawsuit and concluded that no wrongdoing had occurred and that the interests of the Company's shareholders would not be served by pursuing the claims alleged in the plaintiff's demand. The Benfield lawsuit arises out of a shareholder demand made of SunTrust in February 2011 that was the subject of an investigation conducted at the direction of the same Board committee, which concluded that these allegations had no merit. On October 29, 2012, the Court dismissed all claims in the Benfield case. Plaintiffs appealed this decision and this appeal was denied on October 2, 2013. The Court stayed the Mannato case, initially pending the outcome of a similar case and then upon the death of the plaintiff. Mannato subsequently was dismissed due to the lack of a substitute plaintiff.

Colonial BancGroup Securities Litigation
Beginning in July 2009, STRH, certain other underwriters, the Colonial BancGroup, Inc. (“Colonial BancGroup”) and certain officers and directors of Colonial BancGroup were named as defendants in a putative class action filed in the U.S. District Court for the Middle District of Alabama entitled In re Colonial BancGroup, Inc. Securities Litigation. The complaint was brought by purchasers of certain debt and equity securities of Colonial BancGroup and seeks unspecified damages. Plaintiffs allege violations of Sections 11 and 12 of the Securities Act of 1933 due to allegedly false and misleading disclosures in the relevant registration statement and prospectus relating to Colonial BancGroup’s goodwill impairment, mortgage underwriting standards, and credit quality. On August 28, 2009, the Colonial BancGroup filed for bankruptcy. The defendants’ motion to dismiss was denied in May 2010, but the Court subsequently ordered Plaintiffs to file an amended complaint. This amended complaint was filed and the defendants filed a motion to dismiss. In October 2013, the Court granted in part and denied in part this motion.

Putative ERISA Class Actions
Company Stock Class Action
Beginning in July 2008, the Company and certain officers, directors, and employees of the Company were named in a putative class action alleging that they breached their fiduciary duties under ERISA by offering the Company's common stock as an investment option in the SunTrust Banks, Inc. 401(k) Plan (the “Plan”). The plaintiffs purport to represent all current and former Plan participants who held the Company stock in their Plan accounts from May 2007 to the present and seek to recover alleged losses these participants supposedly incurred as a result of their investment in Company stock.
The Company Stock Class Action was originally filed in the U.S. District Court for the Southern District of Florida but was transferred to the U.S. District Court for the Northern District of Georgia, Atlanta Division, (the “District Court”) in November 2008.
On October 26, 2009, an amended complaint was filed. On December 9, 2009, defendants filed a motion to dismiss the amended complaint. On October 25, 2010, the District Court granted in part and denied in part defendants' motion to dismiss the amended complaint. Defendants and plaintiffs filed separate motions for the District Court to certify its October 25, 2010 order for immediate interlocutory appeal. On January 3, 2011, the District Court granted both motions.
On January 13, 2011, defendants and plaintiffs filed separate petitions seeking permission to pursue interlocutory appeals with the U.S. Court of Appeals for the Eleventh Circuit (“the Circuit Court”). On April 14, 2011, the Circuit Court granted defendants and plaintiffs permission to pursue interlocutory review in separate appeals. The Circuit Court subsequently stayed these appeals pending decision of a separate appeal involving The Home Depot in which substantially similar issues are presented. On May 8, 2012, the Circuit Court decided this appeal in favor of The Home Depot. On March 5, 2013, the Circuit Court issued an order remanding the case to the District Court for further proceedings in light of its decision in The Home Depot case. On September 26, 2013, the District Court granted the defendants' motion to dismiss plaintiffs' claims.
Mutual Funds Class Action
On March 11, 2011, the Company and certain officers, directors, and employees of the Company were named in a putative class action alleging that they breached their fiduciary duties under ERISA by offering certain STI Classic Mutual Funds as investment options in the Plan. The plaintiff purports to represent all current and former Plan participants who held the STI Classic Mutual Funds in their Plan accounts from April 2002 through December 2010 and seeks to recover alleged losses these Plan participants supposedly incurred as a result of their investment in the STI Classic Mutual Funds. This action was pending in the U.S. District Court for the Northern District of Georgia, Atlanta Division (the “District Court”). On June 6, 2011, plaintiff filed an amended complaint, and, on June 20, 2011, defendants filed a motion to dismiss the amended complaint. On March 12, 2012, the Court granted in part and denied in part the motion to dismiss. The Company filed a subsequent motion to dismiss the remainder of the case on the ground that the Court lacked subject matter jurisdiction over the remaining claims. On October 30, 2012, the Court dismissed all claims in this action. Immediately thereafter, plaintiffs' counsel initiated a substantially similar lawsuit against the Company substituting two new plaintiffs and also filed an appeal of the dismissal with the U.S. Court of Appeals for the Eleventh Circuit. SunTrust filed a motion to dismiss in the new action and this motion was granted. This decision also is now on appeal to the Eleventh Circuit.

SunTrust Mortgage Reinsurance Class Actions
STM and Twin Rivers Insurance Company ("Twin Rivers") have been named as defendants in two putative class actions alleging that the companies entered into illegal “captive reinsurance” arrangements with private mortgage insurers. More specifically, plaintiffs allege that SunTrust’s selection of private mortgage insurers who agree to reinsure loans referred to them by SunTrust with Twin Rivers results in illegal “kickbacks” in the form of the insurance premiums paid to Twin Rivers. Plaintiffs contend that this arrangement violates the Real Estate Settlement Procedures Act (“RESPA”) and results in unjust enrichment to the detriment of borrowers. The first of these cases, Thurmond, Christopher, et al. v. SunTrust Banks, Inc. et al., was filed in February 2011 in the U.S. District Court for the Eastern District of Pennsylvania. This case was stayed by the Court pending the outcome of Edwards v. First American Financial Corporation, a captive reinsurance case that was pending before the U.S. Supreme Court at the time. The second of these cases, Acosta, Lemuel & Maria Ventrella et al. v. SunTrust Bank, SunTrust Mortgage, Inc., et al., was filed in the U.S. District Court for the Central District of California in December 2011. This case was stayed pending a decision in the Edwards case also. In June 2012, the U.S. Supreme Court withdrew its grant of certiorari in Edwards and, as a result, the stays in these cases were lifted. The plaintiffs in Acosta voluntarily dismissed this case. A motion to dismiss is pending in the Thurmond case.

False Claim Act Litigation
SunTrust Mortgage was a defendant in a qui tam lawsuit brought in the U.S. District Court for the Northern District of Georgia under the federal False Claims Act, United States ex rel. Bibby & Donnelly v. Wells Fargo, et al. This lawsuit originally was filed under seal, but the second amended complaint was unsealed by the District Court in October 2011. The plaintiffs, who alleged that they are officers of a mortgage broker, alleged that numerous mortgage originators, including SunTrust Mortgage, made false statements to the U.S. Department of Veterans Affairs to obtain loan guarantees by the VA under its Interest Rate Reduction Refinancing Loans ("IRRRL") program. Plaintiffs alleged that the mortgage originators charged fees in connection with these loans that were not permitted under the IRRRL program and made false statements to the VA to the effect that the loans complied with all applicable regulations or program requirements. According to Plaintiffs, by doing so, the originators caused the VA to pay, among other costs, amounts to honor the loan guarantees to which they were not entitled. Plaintiffs sued on their own behalf and on behalf of the U.S., and sought, among other things, unspecified damages equal to the loss that SunTrust Mortgage allegedly caused the U.S. (trebled under the False Claims Act), statutory civil penalties of between $5,500 and $11,000 per violation, injunctive relief, and attorneys' fees. The U.S. did not join in the prosecution of this action and SunTrust Mortgage and the relators have settled this dispute.

SunTrust Mortgage Lender Placed Insurance Class Actions
STM has been named in three putative class actions similar to those that other financial institutions are facing which allege that the Company acted improperly in connection with the practice of force placing homeowners’ insurance in certain instances. Generally, the plaintiffs in these actions allege that STM has violated various duties by failing to properly negotiate pricing for force placed insurance and by receiving kickbacks or other improper benefits from the providers of such insurance. The first case, Timothy Smith v. SunTrust Mortgage, Inc. et al., is pending in the United States District Court for the Central District of California. STM filed a motion to dismiss this case and this motion was granted in part and denied in part. The second case, Carina Hamilton v. SunTrust Mortgage, Inc. et al., is pending in the U.S. District Court for the Southern District of Florida. STM filed a motion to dismiss in this case that remains pending. The third case, Yaghoub Mahdavieh et al. v. SunTrust Mortgage, Inc. et al., is pending in the U.S. District Court for the Northern District of Georgia. STM has filed a motion to dismiss and a motion to transfer in this case that remains pending.

Consent Order with the Federal Reserve
On April 13, 2011, SunTrust Banks, Inc., SunTrust Bank, and STM entered into a Consent Order with the Federal Reserve in which SunTrust Banks, Inc., SunTrust Bank, and STM agreed to strengthen oversight of and improve risk management, internal audit, and compliance programs concerning, the residential mortgage loan servicing, loss mitigation, and foreclosure activities of STM. Under the terms of the Consent Order, SunTrust Bank and STM agreed, among other things, to: (a) strengthen the coordination of communications between borrowers and STM concerning ongoing loss mitigation and foreclosure activities; (b) submit a plan to enhance processes for oversight and management of third party vendors used in connection with residential mortgage servicing, loss mitigation and foreclosure activities; (c) enhance and strengthen the enterprise-wide compliance program with respect to oversight of residential mortgage loan servicing, loss mitigation and foreclosure activities; (d) ensure appropriate oversight of STM's activities with respect to Mortgage Electronic Registration System; (e) review and remediate, if necessary, STM's management information systems for its residential mortgage loan servicing, loss mitigation, and foreclosure activities; (f) improve the training of STM officers and staff concerning applicable law, supervisory guidance and internal procedures concerning residential mortgage loan servicing, loss mitigation and foreclosure activities, including the single point of contact for foreclosure and loss mitigation; (g) retain an independent consultant to conduct a comprehensive assessment of STM's risks, including, but not limited to, operational, compliance, transaction, legal, and reputational risks particularly in the areas of residential mortgage loan servicing, loss mitigation and foreclosure; (h) enhance and strengthen the enterprise-wide risk management program with respect to oversight of residential mortgage loan servicing, loss mitigation and foreclosure activities; and (i) enhance and strengthen the internal audit program with respect to residential loan servicing, loss mitigation and foreclosure activities. The comprehensive third party risk assessment was completed in August 2011, and the Company continues implementation of recommended enhancements. All of the action plans designed to complete the above enhancements were accepted by the Federal Reserve and are currently in implementation. During the fourth quarter of 2012, the Company engaged an independent third party consultant approved by the Federal Reserve to prepare a validation report with respect to compliance with the aspects of the Consent Order referenced above. The independent third party consultant completed its review and submitted its report to the Federal Reserve during the second quarter of 2013. The Company continues its implementation of the recommendations noted in this report.

Under the terms of the Consent Order, SunTrust Bank and STM also retained an independent foreclosure consultant approved by the Federal Reserve to conduct a review of residential foreclosure actions pending at any time during the period from January 1, 2009 through December 31, 2010, for loans serviced by STM, to identify any errors, misrepresentations, or deficiencies, determine whether any instances so identified resulted in financial injury, and prepare a written report detailing the findings. On January 7, 2013, the Company, as well as nine other mortgage servicers, entered into an agreement with the OCC and the Federal Reserve to end the independent foreclosure review process and accelerate remediation of loans included in the review. Consistent with this agreement, an Amendment to the Consent Order was entered on February 28, 2013. Pursuant to the Amendment, the Company made a cash payment of $63 million to fund lump-sum payments to borrowers who faced a foreclosure action on their primary residence between January 1, 2009 and December 31, 2010, and committed $100 million to effect loss mitigation or other foreclosure prevention actions. Lump-sum payments to borrowers are being administered by an independent agent approved by the Federal Reserve. The amount of lump-sum payment to a borrower was determined pursuant to a Financial Remediation Framework jointly established by the OCC and the Federal Reserve based on circumstances surrounding the foreclosure activity. The OCC and the Federal Reserve released Independent Foreclosure Review Payment Agreement Details on April 9, 2013 providing that lump-sum payments can range from $300 to $125,000. The Company continues to provide loss mitigation and foreclosure prevention relief to borrowers pursuant to its commitments. As a result of the agreement, the Company is no longer incurring the consulting and legal costs of the independent third parties providing file review, borrower outreach, and legal services associated with the Consent Order foreclosure file review. Redacted versions of the action plans and the Company's engagement letter with the independent foreclosure consultant are available on the Federal Reserve's website. The full text of the Consent Order is available on the Federal Reserve's website and was filed as Exhibit 10.25 to the Company's 2011 Annual Report on Form 10-K. The February 28, 2013 Amendment to the Consent Order also is available on the Federal Reserve's website and was filed as Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2013. As a result of the Federal Reserve's review of the Company's residential mortgage loan servicing and foreclosure processing practices that preceded the Consent Order, the Federal Reserve announced that it would impose a civil money penalty. On October 10, 2013, the Federal Reserve further announced that the penalty amount will be $160 million. The Company expects to satisfy this obligation by providing consumer relief and certain cash payments as contemplated by the settlement with the U.S. and the States Attorneys' General regarding certain mortgage servicing claims, which is discussed below at "United States and States Attorneys' General Mortgage Servicing Claims.”

United States Mortgage Servicing Settlement and HUD Investigation of Origination Practices (FHA)
In January 2012, the Company commenced discussions related to a mortgage servicing settlement with the U.S., through the Department of Justice ("DOJ"), and Attorneys General for several states regarding various potential claims primarily relating to the Company's mortgage servicing activities. Since that time, the parties continued discussions regarding potential resolution. The Company has reached agreements in principle with the HUD and the DOJ to settle these claims as part of the National Mortgage Servicing Settlement.
Separately, on April 25, 2012, the Company was informed of the commencement of an investigation by the HUD OIG relating to STM's origination practices for FHA loans. Since that time, STM has provided documents as part of the investigation. During the first quarter of 2013, the HUD OIG, together with the U.S. Department of Justice (collectively, the “Government”), advised STM of their preliminary investigation findings, including alleged violations of the False Claims Act. Throughout 2013, the Government and the Company engaged in discussions that accelerated in the third quarter and resulted in agreements in principle to resolve certain civil and administrative claims arising from FHA-insured mortgage loans originated by STM from January 1, 2006 through March 31, 2012.
Pursuant to these combined agreements, the Company will commit to provide $500 million of consumer relief, a $468 million cash payment, and the implementation of certain mortgage servicing standards. Satisfaction of the $500 million consumer relief obligation is contingent upon successful implementation of consumer relief actions between July 1, 2013 and a set period of time subsequent to the definitive agreement date. The Company's September 30, 2013 financial statements reflect the estimated financial obligation associated with these agreements in principle.
However, the Company faces several risks from these settlements. If it is unable to meet its consumer relief commitments, then its costs to resolve these matters will likely increase. Additionally, while it does not expect the consumer relief efforts or implementation of certain servicing standards associated with the agreements to have a material impact on its future financial results, this expectation is based on anticipated requirements of the definitive agreements which the parties have not finalized, the complete terms of which are not possible to predict. The Company's statements regarding the expected financial impact of these matters further depend, among other things, upon the agreement of other necessary parties, the ultimate resolution of certain legal matters which are not yet complete, and management’s assumptions about the extent to which such amounts may be deducted for tax purposes.

Mortgage Modification Investigation
STM has been cooperating with the United States Attorneys' Office for the Western District of Virginia and the Office of the Special Inspector General for the Troubled Asset Relief Program (collectively, the “Western District”) in their investigation of STM's administration of HAMP. More specifically, the Western District investigation focuses on whether, during 2009 and 2010, STM harmed borrowers and violated civil or criminal laws by failing to properly process applications for modifications of certain mortgages owned by the GSEs by devoting insufficient resources to its loss mitigation function and making misrepresentations to borrowers about timelines and other features associated with the HAMP modification process. The Western District continues to advise STM that it has made no determinations about how it will proceed in this matter. STM continues to cooperate with the investigation and believes that it has substantial defenses to the asserted allegations.
Business Segment Reporting
Business Segment Reporting
NOTE 15 - BUSINESS SEGMENT REPORTING

The Company has three segments used to measure business activity: Consumer Banking and Private Wealth Management, Wholesale Banking, and Mortgage Banking, with the remainder in Corporate Other. The business segments are determined based on the products and services provided or the type of customer served, and they reflect the manner in which financial information is evaluated by management. During the second quarter of 2013, branch-managed business banking clients were transferred from Wholesale Banking to Consumer Banking and Private Wealth Management, and all periods presented reflect this transfer. The following is a description of the segments and their composition, which reflects the transfer of branch-managed business banking clients.

The Consumer Banking and Private Wealth Management segment is made up of two primary businesses: Consumer Banking and Private Wealth Management.

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Consumer Banking provides services to consumers and branch-managed small business clients through an extensive network of traditional and in-store branches, ATMs, the internet (www.suntrust.com), mobile banking, and telephone (1-800-SUNTRUST). Financial products and services offered to consumers and small business clients include deposits, home equity lines and loans, credit lines, indirect auto, student lending, bank card, other lending products, and various fee-based services. Consumer Banking also serves as an entry point for clients and provides services for other lines of business.

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Private Wealth Management provides a full array of wealth management products and professional services to both individual and institutional clients including loans, deposits, brokerage, professional investment management, and trust services to clients seeking active management of their financial resources. Institutional clients are served by the IIS business. Discount/online and full service brokerage products are offered to individual clients through STIS. Private Wealth Management also includes GenSpring, which provides family office solutions to ultra high net worth individuals and their families. Utilizing teams of multi-disciplinary specialists with expertise in investments, tax, accounting, estate planning, and other wealth management disciplines, GenSpring helps families manage and sustain wealth across multiple generations. 

The Wholesale Banking segment includes the following five businesses:

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CIB delivers comprehensive capital markets, corporate and investment banking solutions, including advisory, capital raising, and financial risk management, to clients in the Wholesale Banking and Private Wealth Management segment. Investment Banking and Corporate Banking teams within CIB serve clients across the nation, offering a full suite of traditional banking and investment banking products and services to companies with annual revenues typically greater than $100 million. Investment Banking serves select industry segments including consumer and retail, energy, financial services, healthcare, industrials, media and communications, real estate, and technology. Corporate Banking serves clients across diversified industry sectors based on size, complexity, and frequency of capital markets issuance. Formerly managed within Commercial Real Estate, the Equipment Finance Group provides lease financing solutions (through SunTrust Equipment Finance & Leasing) and corporate insurance premium financing (through Premium Assignment Corporation).

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Commercial & Business Banking offers an array of traditional banking products and investment banking services as needed by clients in the commercial, dealer services (financing dealer floor plan inventories), not-for-profit and government, and small business sectors.

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Commercial Real Estate provides financial solutions for commercial real estate developers and investors, including construction, mini-perm, and permanent real estate financing, as well as tailored financing and equity investment solutions for community development and affordable housing projects delivered through SunTrust Community Capital.

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RidgeWorth, an SEC registered investment advisor, serves as investment manager for the RidgeWorth Funds as well as individual clients. RidgeWorth is also a holding company with ownership in other institutional asset management boutiques offering a wide array of equity and fixed income capabilities. These boutiques include Ceredex Value Advisors, Certium Asset Management, Seix Investment Advisors, Silvant Capital Management, StableRiver Capital Management, and Zevenbergen Capital Investments.

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Treasury & Payment Solutions provides all of SunTrust business clients with services required to manage their payments and receipts combined with the ability to manage and optimize their deposits across all aspects of their business. Treasury & Payment Solutions operates all electronic and paper payment types, including card, wire transfer, ACH, check, and cash, plus provides clients the means to manage their accounts electronically online both domestically and internationally.

Mortgage Banking offers residential mortgage products nationally through its retail, broker, and correspondent channels, as well as via the internet (www.suntrust.com) and by telephone (1-800-SUNTRUST). These products are either sold in the secondary market, primarily with servicing rights retained, or held in the Company's loan portfolio. Mortgage Banking services loans for itself and for other investors and includes ValuTree Real Estate Services, LLC, a tax service subsidiary.

Corporate Other includes management of the Company's investment securities portfolio, long-term debt, end user derivative instruments, short-term liquidity and funding activities, balance sheet risk management, and most real estate assets. Additionally, it includes Enterprise Information Services, which is the primary information technology and operations group, Corporate Real Estate, Marketing, SunTrust Online, Human Resources, Finance, Corporate Risk Management, Legal and Compliance, Branch Operations, Communications, Procurement, and Executive Management.
Because the business segment results are presented based on management accounting practices, the transition to the consolidated results, which are prepared under U.S. GAAP, creates certain differences which are reflected in Reconciling Items.
For business segment reporting purposes, the basis of presentation in the accompanying discussion includes the following:
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Net interest income – Net interest income is presented on a FTE basis to make tax-exempt assets comparable to other taxable products. The segments have also been matched maturity funds transfer priced, generating credits or charges based on the economic value or cost created by the assets and liabilities of each segment. The mismatch between funds credits and funds charges at the segment level resides in Reconciling Items. The change in the matched maturity funds mismatch is generally attributable to corporate balance sheet management strategies.
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Provision for credit losses – Represents net charge-offs by segment. The difference between the segment net charge-offs and the consolidated provision for credit losses is reported in Reconciling Items.
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Provision/(benefit) for income taxes – Calculated using a nominal income tax rate for each segment. This calculation includes the impact of various income adjustments, such as the reversal of the FTE gross up on tax-exempt assets, tax adjustments, and credits that are unique to each segment. The difference between the calculated provision/(benefit) for income taxes at the segment level and the consolidated provision/(benefit) for income taxes is reported in Reconciling Items.
The segment’s financial performance is comprised of direct financial results, as well as various allocations that for internal management reporting purposes provide an enhanced view of analyzing the segment’s financial performance. The internal allocations include the following:
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Operational Costs – Expenses are charged to the segments based on various statistical volumes multiplied by activity based cost rates. As a result of the activity based costing process, planned residual expenses are also allocated to the segments. The recoveries for the majority of these costs are in Corporate Other.
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Support and Overhead Costs – Expenses not directly attributable to a specific segment are allocated based on various drivers (e.g., number of full-time equivalent employees and volume of loans and deposits). The recoveries for these allocations are in Corporate Other.
•
Sales and Referral Credits – Segments may compensate another segment for referring or selling certain products. The majority of the revenue resides in the segment where the product is ultimately managed.
The application and development of management reporting methodologies is a dynamic process and is subject to periodic enhancements. The implementation of these enhancements to the internal management reporting methodology may materially affect the results disclosed for each segment with no impact on consolidated results. Whenever significant changes to management reporting methodologies take place, the impact of these changes is quantified and prior period information is reclassified wherever practicable. Prior year results have been restated to reflect the transfer of branch-managed business banking clients from Wholesale Banking to Consumer Banking and Private Wealth Management.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2013
(Dollars in millions)
Consumer
Banking and
Private Wealth
Management
 
Wholesale Banking
 
Mortgage Banking
 
Corporate Other
 
Reconciling
Items
 
Consolidated
Balance Sheets:
 
 
 
 
 
 
 
 
 
 
 
Average total assets

$45,532

 

$66,552

 

$33,025

 

$25,646

 

$1,083

 

$171,838

Average total liabilities
84,744

 
46,977

 
3,740

 
15,362

 
(12
)
 
150,811

Average total equity
—

 
—

 
—

 
—

 
21,027

 
21,027

 
 
 
 
 
 
 
 
 
 
 
 
Statements of Income/(loss):
 
 
 
 
 
 
 
 
 
 
 
Net interest income

$653

 

$401

 

$140

 

$74

 

($60
)
 

$1,208

FTE adjustment
—

 
31

 
—

 
1

 
—

 
32

Net interest income - FTE 1
653

 
432

 
140

 
75

 
(60
)
 
1,240

Provision for credit losses 2
79

 
21

 
45

 
—

 
(50
)
 
95

Net interest income after provision for credit losses
574

 
411

 
95

 
75

 
(10
)
 
1,145

Total noninterest income
379

 
294

 
(1
)
 
11

 
(3
)
 
680

Total noninterest expense
689

 
428

 
638

 
(9
)
 
(3
)
 
1,743

Income/(loss) before provision/(benefit) for income taxes
264

 
277

 
(544
)
 
95

 
(10
)
 
82

Provision/(benefit) for income taxes 3
97

 
81

 
(139
)
 
(166
)
 
13

 
(114
)
Net income/(loss) including income attributable to noncontrolling interest
167

 
196

 
(405
)
 
261

 
(23
)
 
196

Net income attributable to noncontrolling interest
—

 
2

 
—

 
5

 
—

 
7

Net income/(loss)

$167

 

$194

 

($405
)
 

$256

 

($23
)
 

$189


 
Three Months Ended September 30, 2012
(Dollars in millions)
Consumer
Banking and
Private Wealth
Management
 
Wholesale Banking
 
Mortgage Banking
 
Corporate Other
 
Reconciling
Items
 
Consolidated
Balance Sheets:
 
 
 
 
 
 
 
 
 
 
 
Average total assets

$47,053

 

$64,605

 

$35,372

 

$26,667

 

$1,585

 

$175,282

Average total liabilities
84,107

 
45,621

 
4,890

 
19,933

 
112

 
154,663

Average total equity
—

 
—

 
—

 
—

 
20,619

 
20,619

 
 
 
 
 
 
 
 
 
 
 
 
Statements of Income/(loss):
 
 
 
 
 
 
 
 
 
 
 
Net interest income

$691

 

$386

 

$129

 

$80

 

($15
)
 

$1,271

FTE adjustment
—

 
29

 
—

 
1

 
—

 
30

Net interest income - FTE 1
691

 
415

 
129

 
81

 
(15
)
 
1,301

Provision for credit losses 2
172

 
69

 
270

 
—

 
(61
)
 
450

Net interest income/(loss) after provision for credit losses
519

 
346

 
(141
)
 
81

 
46

 
851

Total noninterest income
356

 
354

 
(75
)
 
1,910

 
(3
)
 
2,542

Total noninterest expense
773

 
518

 
368

 
66

 
1

 
1,726

Income/(loss) before provision/(benefit) for income taxes
102

 
182

 
(584
)
 
1,925

 
42

 
1,667

Provision/(benefit) for income taxes 3
39

 
47

 
(200
)
 
675

 
20

 
581

Net income/(loss) including income attributable to noncontrolling interest
63

 
135

 
(384
)
 
1,250

 
22

 
1,086

Net income attributable to noncontrolling interest
—

 
7

 
—

 
3

 
(1
)
 
9

Net income/(loss)

$63

 

$128

 

($384
)
 

$1,247

 

$23

 

$1,077


1 Presented on a matched maturity funds transfer price basis for the segments.
2 Provision for credit losses represents net charge-offs for the segments.
3 Includes regular income tax provision/(benefit) and taxable-equivalent income adjustment reversal.

 
Nine Months Ended September 30, 2013
(Dollars in millions)
Consumer Banking and Private Wealth Management
 
Wholesale Banking
 
Mortgage Banking
 
Corporate Other
 
Reconciling
Items
 
Consolidated
Balance Sheets:
 
 
 
 
 
 
 
 
 
 
 
Average total assets

$45,156

 

$66,307

 

$32,973

 

$26,264

 

$1,361

 

$172,061

Average total liabilities
84,980

 
46,904

 
4,166

 
14,960

 
(87
)
 
150,923

Average total equity
—

 
—

 
—

 
—

 
21,138

 
21,138

 
 
 
 
 
 
 
 
 
 
 
 
Statements of Income/(loss):
 
 
 
 
 
 
 
 
 
 
 
Net interest income

$1,950

 

$1,190

 

$409

 

$231

 

($140
)
 

$3,640

FTE adjustment
—

 
90

 
—

 
2

 
1

 
93

Net interest income - FTE 1
1,950

 
1,280

 
409

 
233

 
(139
)
 
3,733

Provision for credit losses 2
286

 
67

 
197

 
—

 
(97
)
 
453

Net interest income after provision for credit losses
1,664

 
1,213

 
212

 
233

 
(42
)
 
3,280

Total noninterest income
1,107

 
934

 
328

 
41

 
(9
)
 
2,401

Total noninterest expense
2,082

 
1,224

 
1,247

 
(41
)
 
(9
)
 
4,503

Income/(loss) before provision/(benefit) for income taxes
689

 
923

 
(707
)
 
315

 
(42
)
 
1,178

Provision/(benefit) for income taxes 3
253

 
281

 
(206
)
 
(98
)
 
14

 
244

Net income/(loss) including income attributable to noncontrolling interest
436

 
642

 
(501
)
 
413

 
(56
)
 
934

Net income attributable to noncontrolling interest
—

 
7

 
—

 
9

 
—

 
16

Net income/(loss)

$436

 

$635

 

($501
)
 

$404

 

($56
)
 

$918



 
Nine Months Ended September 30, 2012
(Dollars in millions)
Consumer
Banking and
Private Wealth
Management
 
Wholesale Banking
 
Mortgage Banking
 
Corporate Other
 
Reconciling
Items
 
Consolidated
Balance Sheets:
 
 
 
 
 
 
 
 
 
 
 
Average total assets

$47,029

 

$63,831

 

$35,464

 

$28,932

 

$1,423

 

$176,679

Average total liabilities
84,749

 
46,538

 
4,357

 
20,764

 
(179
)
 
156,229

Average total equity
—

 
—

 
—

 
—

 
20,450

 
20,450

 
 
 
 
 
 
 
 
 
 
 
 
Statements of Income/(loss):
 
 
 
 
 
 
 
 
 
 
 
Net interest income

$2,057

 

$1,133

 

$387

 

$301

 

($22
)
 

$3,856

FTE adjustment
—

 
90

 
—

 
3

 
—

 
93

Net interest income - FTE 1
2,057

 
1,223

 
387

 
304

 
(22
)
 
3,949

Provision for credit losses 2
464

 
217

 
602

 
—

 
(216
)
 
1,067

Net interest income/(loss) after provision for credit losses
1,593

 
1,006

 
(215
)
 
304

 
194

 
2,882

Total noninterest income
1,115

 
1,020

 
261

 
1,970

 
(8
)
 
4,358

Total noninterest expense
2,285

 
1,429

 
1,045

 
61

 
(7
)
 
4,813

Income/(loss) before provision/(benefit) for income taxes
423

 
597

 
(999
)
 
2,213

 
193

 
2,427

Provision/(benefit) for income taxes 3
155

 
159

 
(369
)
 
776

 
82

 
803

Net income/(loss) including income attributable to noncontrolling interest
268

 
438

 
(630
)
 
1,437

 
111

 
1,624

Net income attributable to noncontrolling interest
—

 
14

 
—

 
7

 
1

 
22

Net income/(loss)

$268

 

$424

 

($630
)
 

$1,430

 

$110

 

$1,602

1 Presented on a matched maturity funds transfer price basis for the segments.
2 Provision for credit losses represents net charge-offs for the segments.
3 Includes regular income tax provision/(benefit) and taxable-equivalent income adjustment reversal.
Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income
NOTE 16 - ACCUMULATED OTHER COMPREHENSIVE (LOSS)/INCOME
AOCI was calculated as follows:
 
 
Three Months Ended September 30
 
2013
 
2012
(Dollars in millions)
Pre-tax Amount
 
Income Tax (Expense) Benefit
 
After-tax Amount
 
Pre-tax Amount
 
Income Tax (Expense) Benefit
 
After-tax Amount
AOCI, beginning balance

($432
)
 

$149

 

($283
)
 

$2,733

 

($990
)
 

$1,743

Unrealized (losses)/gains on AFS securities:
 
 
 
 
 
 
 
 
 
 
 
Unrealized net losses
(18
)
 
7

 
(11
)
 
(302
)
 
105

 
(197
)
Less: reclassification adjustment for realized gains 1
—

 
—

 
—

 
(1,941
)
 
690

 
(1,251
)
Unrealized gains on cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
Unrealized net gains
60

 
(22
)
 
38

 
433

 
(154
)
 
279

Less: reclassification adjustment for realized gains
(101
)
 
37

 
(64
)
 
(118
)
 
43

 
(75
)
Change related to employee benefit plans
7

 
(3
)
 
4

 
8

 
(3
)
 
5

AOCI, ending balance

($484
)
 

$168

 

($316
)
 

$813

 

($309
)
 

$504



 
Nine Months Ended September 30
 
2013
 
2012
(Dollars in millions)
Pre-tax Amount
 
Income Tax (Expense) Benefit
 
After-tax Amount
 
Pre-tax Amount
 
Income Tax (Expense) Benefit
 
After-tax Amount
AOCI, beginning balance

$506

 

($197
)
 

$309

 

$2,744

 

($995
)
 

$1,749

Unrealized (losses)/gains on AFS securities:
 
 
 
 
 
 
 
 
 
 
 
Unrealized net (losses)/gains
(736
)
 
271

 
(465
)
 
29

 
(13
)
 
16

Less: reclassification adjustment for realized gains 1
(2
)
 
1

 
(1
)
 
(1,973
)
 
701

 
(1,272
)
Unrealized gains on cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
Unrealized net gains
15

 
(5
)
 
10

 
439

 
(159
)
 
280

Less: reclassification adjustment for realized gains
(315
)
 
116

 
(199
)
 
(390
)
 
144

 
(246
)
Change related to employee benefit plans
48

 
(18
)
 
30

 
(36
)
 
13

 
(23
)
AOCI, ending balance

($484
)
 

$168

 

($316
)
 

$813

 

($309
)
 

$504


1 Excludes $305 million of losses related to derivatives associated with the Coke Agreements termination that was recorded in securities gains on the Consolidated Statements of Income.
The reclassification from AOCI consisted of the following:
 
 
 
 
 
(Dollars in millions)
 
Three Months Ended September 30
 
Nine Months Ended September 30
 
Affected line item in the Consolidated Statements of Income
Details about AOCI components
 
2013
 
2012
 
2013
 
2012
 
Realized gains on AFS securities:
 
 
 
 
 
 
 
 
 
 
 
 

$—

 

($1,941
)
 

($2
)
 

($1,973
)
 
Net securities gains
 
 
—

 
690

 
1

 
701

 
Provision for income taxes
 
 

$—

 

($1,251
)
 

($1
)
 

($1,272
)
 

Gains on cash flow hedges:
 
 
 
 
 
 
 
 
 
 

 

($101
)
 

($118
)
 

($315
)
 

($390
)
 
Interest and fees on loans
 
 
37

 
43

 
116

 
144

 
Provision for income taxes
 
 

($64
)
 

($75
)
 

($199
)
 

($246
)
 

Change related to employee benefit plans:
 
 
 
 
 
 
 
 
 
 
Amortization of actuarial losses
 

$6

 

$9

 

$19

 

$21

 
Employee benefits
 
 
1

 
(1
)
 
29

 
(57
)
 
Other assets/other liabilities 1
 
 
7

 
8

 
48

 
(36
)
 

 
 
(3
)
 
(3
)
 
(18
)
 
13

 
Provision for income taxes
 
 

$4

 

$5

 

$30

 

($23
)
 

1 This AOCI component is recognized as an adjustment to the funded status of employee benefit plans in the Company's Consolidated Balance Sheets. (For additional information, see Note 15, "Employee Benefit Plans," to the Consolidated Financial Statements in the Company's 2012 Annual Report on Form 10−K).
Significant Accounting Policies (Policies)
Consolidation, Variable Interest Entity, Policy [Policy Text Block] 
Basis of Presentation

The unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete consolidated financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the results of operations in these financial statements, have been
made.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could vary from these estimates. Certain reclassifications have been made to prior period amounts to conform to the current period presentation.

The Company evaluated subsequent events through the date its financial statements were issued.

These financial statements should be read in conjunction with the Company’s 2012 Annual Report on Form 10-K. There have been no significant changes to the Company’s accounting policies as disclosed in the Company’s 2012 Annual Report on Form 10-K.
Accounting Policies Recently Adopted and Pending Accounting Pronouncements 
Accounting Policies Recently Adopted and Pending Accounting Pronouncements
In December 2011, the FASB issued ASU 2011-11, "Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities." The ASU requires additional disclosures about financial instruments and derivative instruments that are offset or subject to an enforceable master netting arrangement or similar agreement. In January 2013, the FASB issued ASU 2013-01, “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities”, which more narrowly defined the scope of financial instruments to only include derivatives, repurchase and reverse repurchase agreements, and securities borrowing and lending transactions. The Company adopted these ASUs as of January 1, 2013, and the adoption did not have an impact on the Company's financial position, results of operations, or EPS. See Note 2, "Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell" and Note 11, "Derivative Financial Instruments."
In February 2013, the FASB issued ASU 2013-02, "Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income" which provides disclosure guidance on amounts reclassified out of AOCI by component. The Company adopted the ASU as of January 1, 2013, and the adoption did not have an impact on the Company's financial position, results of operations, or EPS. See Note 16, "Accumulated Other Comprehensive Income."
In March 2013, the FASB issued ASU 2013-04, "Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date (a consensus of the FASB Emerging Issues Task Force)." The ASU requires additional disclosures about joint and several liability arrangements and requires the Company to measure obligations resulting from joint and several liability arrangements as the sum of the amount the Company agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the Company expects to pay on behalf of its co-obligors. The ASU is effective for the fiscal years and interim periods beginning after December 15, 2013. The Company is evaluating the impact of the ASU; however, it is not expected to have a significant impact on the Company's financial position, results of operations, or EPS.
In June 2013, the FASB issued ASU 2013-08, "Financial Services—Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements." The ASU clarifies the characteristics of an investment company and requires an investment company to measure noncontrolling ownership interests in other investment companies at fair value rather than using the equity method of accounting. The ASU is effective for the fiscal years and interim periods beginning after December 15, 2013. The Company is evaluating the impact of the ASU; however, it is not expected to have a significant impact on the Company's financial position, results of operations, or EPS.

In July 2013, the FASB issued ASU 2013-10, “Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes (a consensus of the Emerging Issues Task Force).” The ASU permits the Fed Funds Effective Swap Rate (OIS) to be used as a benchmark interest rate for hedge accounting purposes, in addition to U.S. Treasury rates, and LIBOR. The amendments also remove the restriction on using different benchmark rates for similar hedges. The ASU was effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The ASU has no impact on the Company's current hedging relationships and, thus, no impact on the Company's financial position, results of operations, or EPS.

In July 2013, the FASB issued ASU 2013-11,“Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the Emerging Issues Task Force).” Prior to this ASU, U.S. GAAP did not include explicit guidance on the financial statement presentation of a UTB when a NOL carryforward, a similar tax loss, or a tax credit carryforward exists. The ASU requires, with limited exceptions, that a UTB, or a portion of a UTB, should be presented in the financial statements as a reduction to a DTA for a NOL carryforward, a similar tax loss, or a tax credit carryforward. The ASU is effective for fiscal years and interim periods beginning after December 15, 2013. As early adoption is permitted, the Company adopted this ASU upon issuance and it resulted in an immaterial reclassification within liabilities in the Consolidated Balance Sheets. As this ASU only impacts financial statement presentation and related footnote disclosures, there will be no impact on the Company's financial position, results of operations, or EPS.
Employee Benefit Plans Employee Benefits - Policies (Policies)
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]
The Company sponsors various short-term incentive plans and LTIs for eligible employees, which may be delivered through various incentive programs, including stock options, RSUs, restricted stock, and LTI cash. AIP is the Company's short-term cash incentive plan for key employees that provides for potential annual cash awards based on the Company's performance and/or the achievement of business unit and individual performance objectives. Awards under the LTI cash plan generally cliff vest over a period of three years from the date of the award and are paid in cash. All incentive awards are subject to clawback provisions. Compensation expense for the AIP and LTI cash plans was $30 million and $39 million for the three months ended September 30, 2013 and 2012, respectively and $108 million and $116 million for the nine months ended September 30, 2013 and 2012, respectively.

Stock-Based Compensation
The Company provides stock-based awards through the 2009 Stock Plan (as amended and restated effective January 1, 2011) under which the Compensation Committee of the Board of Directors has the authority to grant stock options, restricted stock, and RSUs to key employees of the Company. Some awards may have performance or other conditions, such as vesting tied to the Company's total shareholder return relative to a peer group or vesting tied to the achievement of an absolute financial performance target. Under the 2009 Stock Plan, approximately 21 million shares of common stock are authorized and reserved for issuance, of which no more than 17 million shares may be issued as restricted stock or stock units. At September 30, 2013, 17 million shares were available for grant, including 9 million shares available to be issued as restricted stock.
Stock options are granted at an exercise price that is no less than the fair market value of a share of SunTrust common stock on the grant date and may be either tax-qualified incentive stock options or non-qualified stock options. Stock options typically vest pro-rata over three years and generally have a maximum contractual life of ten years. Upon exercise, shares are generally issued from treasury stock. Upon exercise, the weighted average fair value of options granted during the first nine months of 2013 and 2012 were $7.37 and $7.83 per share, respectively. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model based on the following assumptions for the nine months ended September 30:
 
2013
 
2012
Dividend yield
1.28
%
 
0.91
%
Expected stock price volatility
30.98

 
39.88

Risk-free interest rate (weighted average)
1.02

 
1.07

Expected life of options
6 years

 
6 years

Federal Funds Sold and Securities Borrowed or Purchased Under Agreements to Resell (Tables)
Schedule of Resale Agreements [Table Text Block] 
(Dollars in millions)
September 30, 2013
 
December 31, 2012
Fed funds

$97

 

$29

Securities borrowed
241

 
155

Resell agreements
884

 
917

Total fed funds sold and securities borrowed or purchased under agreements to resell

$1,222

 

$1,101


Netting of Financial Instruments - Repurchase Agreements [Table Text Block] 
(Dollars in millions)
Gross
Amount
 
Amount
Offset
 
Net Amount
Presented in
Consolidated
Balance Sheets
 
Held/Pledged
Financial
Instruments
 
Net
Amount
September 30, 2013
 
 
 
 
 
 
 
 
 
Financial assets:
 
 
 
 
 
 
 
 
 
Securities borrowed or purchased under agreements to resell

$1,125

 

$—

 

$1,125

1, 2 

$1,117

 

$8

Financial liabilities:
 
 
 
 
 
 
 
 
 
Securities sold under agreements to repurchase
1,574

 
—

 
1,574

1 
1,574

 
—

 
 
 
 
 
 
 
 
 
 
December 31, 2012
 
 
 
 
 
 
 
 
 
Financial assets:
 
 
 
 
 
 
 
 
 
Securities borrowed or purchased under agreements to resell

$1,072

 

$—

 

$1,072

1,2 

$1,069

 

$3

Financial liabilities:
 
 
 
 
 
 
 
 
 
Securities sold under agreements to repurchase
1,574

 
—

 
1,574

1 
1,574

 
—


1 None of the Company's repurchase and reverse repurchase transactions met the right of setoff criteria at September 30, 2013 and December 31, 2012.
2 Excludes $97 million and $29 million of Fed funds sold which are not subject to a master netting agreement at September 30, 2013 and December 31, 2012, respectively.
Securities Available for Sale (Tables)
Securities Portfolio Composition 
 
September 30, 2013
(Dollars in millions)
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities

$792

 

$7

 

$28

 

$771

Federal agency securities
2,167

 
53

 
49

 
2,171

U.S. states and political subdivisions
239

 
8

 
2

 
245

MBS - agency
18,223

 
449

 
314

 
18,358

MBS - private
167

 
1

 
2

 
166

ABS
95

 
2

 
1

 
96

Corporate and other debt securities
40

 
3

 
—

 
43

Other equity securities1
775

 
1

 
—

 
776

Total securities AFS

$22,498

 

$524

 

$396

 

$22,626

 
 
 
 
 
 
 
 
 
December 31, 2012
(Dollars in millions)
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
U.S. Treasury securities

$212

 

$10

 

$—

 

$222

Federal agency securities
1,987

 
85

 
3

 
2,069

U.S. states and political subdivisions
310

 
15

 
5

 
320

MBS - agency
17,416

 
756

 
3

 
18,169

MBS - private
205

 
4

 
—

 
209

ABS
214

 
5

 
3

 
216

Corporate and other debt securities
42

 
4

 
—

 
46

Other equity securities1
701

 
1

 
—

 
702

Total securities AFS

$21,087

 

$880

 

$14

 

$21,953

1At September 30, 2013, other equity securities was comprised of the following: $266 million in FHLB of Atlanta stock, $402 million in Federal Reserve Bank stock, $107 million in mutual fund investments, and $1 million of other. At December 31, 2012, other equity securities was comprised of the following: $229 million in FHLB of Atlanta stock, $402 million in Federal Reserve Bank stock, $69 million in mutual fund investments, and $2 million of other.
Investment Income [Table Text Block] 
 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
2013
 
2012
 
2013
 
2012
Taxable interest

$132

 

$132

 

$397

 

$454

Tax-exempt interest
3

 
4

 
8

 
12

Dividends1
8

 
8

 
24

 
53

Total interest and dividends

$143

 

$144

 

$429

 

$519

1Includes dividends on Coke common stock of $31 million for the nine months ended September 30, 2012.
Amortized Cost and Fair Value of Investments in Debt Securities by Estimated Average Life 
 
Distribution of Maturities
(Dollars in millions)
1 Year
or Less
 
1-5
Years
 
5-10
Years
 
After 10
Years
 
Total
Amortized Cost:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities

$1

 

$201

 

$590

 

$—

 

$792

Federal agency securities
41

 
1,410

 
563

 
153

 
2,167

U.S. states and political subdivisions
97

 
89

 
9

 
44

 
239

MBS - agency
1,730

 
9,369

 
3,795

 
3,329

 
18,223

MBS - private
—

 
160

 
7

 
—

 
167

ABS
74

 
20

 
1

 
—

 
95

Corporate and other debt securities
—

 
22

 
18

 
—

 
40

Total debt securities

$1,943

 

$11,271

 

$4,983

 

$3,526

 

$21,723

Fair Value:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities

$1

 

$208

 

$562

 

$—

 

$771

Federal agency securities
41

 
1,458

 
523

 
149

 
2,171

U.S. states and political subdivisions
99

 
93

 
10

 
43

 
245

MBS - agency
1,824

 
9,677

 
3,717

 
3,140

 
18,358

MBS - private
—

 
159

 
7

 
—

 
166

ABS
73

 
21

 
2

 
—

 
96

Corporate and other debt securities
—

 
25

 
18

 
—

 
43

Total debt securities

$2,038

 

$11,641

 

$4,839

 

$3,332

 

$21,850

 Weighted average yield1
2.89
%
 
2.93
%
 
2.20
%
 
2.69
%
 
2.72
%
1Average yields are based on amortized cost and presented on a FTE basis.
Securities in a Continuous Unrealized Loss Position 
 
September 30, 2013
 
Less than twelve months
 
Twelve months or longer
 
Total
(Dollars in millions)
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized  
Losses
Temporarily impaired securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities

$563

 

$28

 

$—

 

$—

 

$563

 

$28

Federal agency securities
637

 
48

 
18

 
1

 
655

 
49

U.S. states and political subdivisions
—

 
—

 
20

 
2

 
20

 
2

MBS - agency
7,147

 
311

 
84

 
3

 
7,231

 
314

ABS
—

 
—

 
13

 
1

 
13

 
1

Total temporarily impaired securities
8,347

 
387

 
135

 
7

 
8,482

 
394

OTTI securities1:
 
 
 
 
 
 
 
 
 
 
 
MBS - private
113

 
2

 
—

 
—

 
113

 
2

Total OTTI securities
113

 
2

 
—

 
—

 
113

 
2

Total impaired securities

$8,460

 

$389

 

$135

 

$7

 

$8,595

 

$396


 
December 31, 2012
 
Less than twelve months
 
Twelve months or longer
 
Total
(Dollars in millions)
Fair
   Value   
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Temporarily impaired securities:
 
 
 
 
 
 
 
 
 
 
 
Federal agency securities

$298

 

$3

 

$—

 

$—

 

$298

 

$3

U.S. states and political subdivisions
1

 
—

 
24

 
5

 
25

 
5

MBS - agency
1,212

 
3

 
—

 
—

 
1,212

 
3

ABS
—

 
—

 
13

 
2

 
13

 
2

Total temporarily impaired securities
1,511

 
6

 
37

 
7

 
1,548

 
13

OTTI securities1:
 
 
 
 
 
 
 
 
 
 
 
ABS
—

 
—

 
3

 
1

 
3

 
1

Total OTTI securities
—

 
—

 
3

 
1

 
3

 
1

Total impaired securities

$1,511

 

$6

 

$40

 

$8

 

$1,551

 

$14

1Includes OTTI securities for which credit losses have been recorded in earnings in current or prior periods.
Gross Realized Gains and Losses on Sales and OTTI on Securities AFS 
 
Three Months Ended September 30
 
Nine Months Ended September 30
 
(Dollars in millions)
2013
 
2012
 
2013
 
2012
 
Gross realized gains

$—



$1,944

1 

$4

 

$1,980

1 
Gross realized losses
—

 
—

 
(1
)
 
—

 
OTTI
—

 
(3
)
 
(1
)
 
(7
)
 
Net securities gains

$—

 

$1,941

 

$2

 

$1,973

 

1 Included in these amounts are $305 million in losses recognized during the three and nine months ended September 30, 2012 related to the termination of the Agreements that hedge the Coke common stock.
Other Than Temporary Impairment Losses On Investment Securities [Table Text Block] 
 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
2013
 
2012
 
2013
 
2012
OTTI1

$—

 

$—

 

$—

 

$—

Portion of gains/(losses) recognized in OCI (before taxes)
—

 
3

 
1

 
7

Net impairment losses recognized in earnings

$—

 

$3

 

$1

 

$7

1 The initial OTTI amount represents the excess of the amortized cost over the fair value of AFS debt securities. For subsequent impairments of the same security, amount includes additional declines in the fair value subsequent to the previously recorded OTTI, if applicable, until such time the security is no longer in an unrealized loss position.
Rollforward of Credit Losses Recognized in Earnings Related to Securities 
 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
2013
 
2012
 
2013
 
2012
Balance, beginning of period

$32

 

$28

 

$31

 

$25

Additions:
 
 
 
 
 
 
 
OTTI credit losses on previously impaired securities
—

 
3

 
1

 
7

Reductions:
 
 
 
 
 
 
 
Increases in expected cash flows recognized over the remaining life of the securities
(1
)
 
—

 
(1
)
 
(1
)
Balance, end of period

$31

 

$31

 

$31

 

$31


Measurement Of Investment Credit Losses Assumptions [Table Text Block] 
 
2013
 
2012
Default rate
2 - 9%
 
2 - 9%
Prepayment rate
7 - 21%
 
7 - 21%
Loss severity
46 - 74%
 
40 - 56%
Loans (Tables)
Composition of Loan Portfolio 
(Dollars in millions)
September 30,
2013
 
December 31, 2012
Commercial loans:
 
 
 
C&I

$55,943

 

$54,048

CRE
4,755

 
4,127

Commercial construction
737

 
713

Total commercial loans
61,435

 
58,888

Residential loans:
 
 
 
Residential mortgages - guaranteed
3,527

 
4,252

Residential mortgages - nonguaranteed1
24,106

 
23,389

Home equity products
14,826

 
14,805

Residential construction
582

 
753

Total residential loans
43,041

 
43,199

Consumer loans:
 
 
 
Guaranteed student loans
5,489

 
5,357

Other direct
2,670

 
2,396

Indirect
11,035

 
10,998

Credit cards
670

 
632

Total consumer loans
19,864

 
19,383

LHFI

$124,340

 

$121,470

LHFS

$2,462

 

$3,399

1Includes $316 million and $379 million of loans carried at fair value at September 30, 2013 and December 31, 2012, respectively.

LHFI by Credit Quality Indicator 
 
Commercial Loans
 
C&I
 
CRE
 
Commercial construction
(Dollars in millions)
September 30,
2013
 
December 31, 2012
 
September 30,
2013
 
December 31, 2012
 
September 30,
2013
 
December 31, 2012
Credit rating:
 
 
 
 
 
 
 
 
 
 
 
Pass

$54,162

 

$52,292

 

$4,421

 

$3,564

 

$672

 

$506

Criticized accruing
1,565

 
1,562

 
292

 
497

 
48

 
173

Criticized nonaccruing
216

 
194

 
42

 
66

 
17

 
34

Total

$55,943

 

$54,048

 

$4,755

 

$4,127

 

$737

 

$713

 
Residential Loans 1
 
Residential mortgages -
nonguaranteed
 
Home equity products
 
Residential construction
(Dollars in millions)
September 30,
2013
 
December 31, 2012
 
September 30,
2013
 
December 31, 2012
 
September 30,
2013
 
December 31, 2012
Current FICO score range:
 
 
 
 
 
 
 
 
 
 
 
700 and above

$18,593

 

$17,410

 

$11,588

 

$11,339

 

$439

 

$561

620 - 699
3,740

 
3,850

 
2,250

 
2,297

 
101

 
123

Below 6202
1,773

 
2,129

 
988

 
1,169

 
42

 
69

Total

$24,106

 

$23,389

 

$14,826

 

$14,805

 

$582

 

$753

 
Consumer Loans 3
 
Other direct
 
Indirect
 
Credit cards
(Dollars in millions)
September 30,
2013
 
December 31, 2012
 
September 30,
2013
 
December 31, 2012
 
September 30,
2013
 
December 31, 2012
Current FICO score range:
 
 
 
 
 
 
 
 
 
 
 
700 and above

$2,238

 

$1,980

 

$8,214

 

$8,300

 

$466

 

$435

620 - 699
372

 
350

 
2,223

 
2,038

 
164

 
152

Below 6202
60

 
66

 
598

 
660

 
40

 
45

Total

$2,670

 

$2,396

 

$11,035

 

$10,998

 

$670

 

$632


1Excludes $3.5 billion and $4.3 billion at September 30, 2013 and December 31, 2012, respectively, of guaranteed residential loans. At September 30, 2013 and December 31, 2012, the majority of these loans had FICO scores of 700 and above.
2For substantially all loans with refreshed FICO scores below 620, the borrower’s FICO score at the time of origination exceeded 620 but has since deteriorated as the loan has seasoned.
3Excludes $5.5 billion and $5.4 billion at September 30, 2013 and December 31, 2012, respectively, of guaranteed student loans
Payment Status for the LHFI Portfolio 
 
September 30, 2013
(Dollars in millions)
Accruing
Current
 
Accruing
30-89 Days
Past Due
 
Accruing
90+ Days
Past Due
 
 Nonaccruing 2
 
Total
Commercial loans:
 
 
 
 
 
 
 
 
 
C&I

$55,663

 

$43

 

$21

 

$216

 

$55,943

CRE
4,706

 
5

 
2

 
42

 
4,755

Commercial construction
720

 
—

 
—

 
17

 
737

Total commercial loans
61,089

 
48

 
23

 
275

 
61,435

Residential loans:
 
 
 
 
 
 
 
 
 
Residential mortgages - guaranteed
2,878

 
40

 
609

 
—

 
3,527

Residential mortgages - nonguaranteed1
23,463

 
156

 
23

 
464

 
24,106

Home equity products
14,496

 
121

 
—

 
209

 
14,826

Residential construction
498

 
4

 
1

 
79

 
582

Total residential loans
41,335

 
321

 
633

 
752

 
43,041

Consumer loans:
 
 
 
 
 
 
 
 
 
Guaranteed student loans
4,629

 
361

 
499

 
—

 
5,489

Other direct
2,650

 
15

 
1

 
4

 
2,670

Indirect
10,974

 
54

 
1

 
6

 
11,035

Credit cards
658

 
6

 
6

 
—

 
670

Total consumer loans
18,911

 
436

 
507

 
10

 
19,864

Total LHFI

$121,335

 

$805

 

$1,163

 

$1,037

 

$124,340

1Includes $316 million of loans carried at fair value, the majority of which were accruing current.
2Nonaccruing loans past due 90 days or more totaled $718 million. Nonaccruing loans past due fewer than 90 days include modified nonaccrual loans reported as TDRs and performing second lien loans which are classified as nonaccrual when the first lien loan is nonperforming. 

 
December 31, 2012
(Dollars in millions)
Accruing
Current
 
Accruing
30-89 Days
Past Due
 
Accruing
90+ Days
Past Due
 
 Nonaccruing 2
 
Total
Commercial loans:
 
 
 
 
 
 
 
 
 
C&I

$53,747

 

$81

 

$26

 

$194

 

$54,048

CRE
4,050

 
11

 
—

 
66

 
4,127

Commercial construction
679

 
—

 
—

 
34

 
713

Total commercial loans
58,476

 
92

 
26

 
294

 
58,888

Residential loans:
 
 
 
 
 
 
 
 
 
Residential mortgages - guaranteed
3,523

 
39

 
690

 
—

 
4,252

Residential mortgages - nonguaranteed1
22,401

 
192

 
21

 
775

 
23,389

Home equity products
14,314

 
149

 
1

 
341

 
14,805

Residential construction
625

 
15

 
1

 
112

 
753

Total residential loans
40,863

 
395

 
713

 
1,228

 
43,199

Consumer loans:
 
 
 
 
 
 
 
 
 
Guaranteed student loans
4,769

 
556

 
32

 
—

 
5,357

Other direct
2,372

 
15

 
3

 
6

 
2,396

Indirect
10,909

 
68

 
2

 
19

 
10,998

Credit cards
619

 
7

 
6

 
—

 
632

Total consumer loans
18,669

 
646

 
43

 
25

 
19,383

Total LHFI

$118,008

 

$1,133

 

$782

 

$1,547

 

$121,470

1Includes $379 million of loans carried at fair value, the majority of which were accruing current.
2Nonaccruing loans past due 90 days or more totaled $975 million. Nonaccruing loans past due fewer than 90 days include modified nonaccrual loans reported as TDRs and performing second lien loans which are classified as nonaccrual when the first lien loan is nonperforming.

LHFI Considered Impaired 
 
September 30, 2013
 
December 31, 2012
(Dollars in millions)
Unpaid
Principal
Balance
 
Amortized   
Cost1
 
Related
Allowance
 
Unpaid
Principal
Balance
 
Amortized   
Cost1
 
Related
Allowance
Impaired loans with no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
C&I

$90

 

$63

 

$—

 

$59

 

$40

 

$—

CRE
5

 
4

 
—

 
6

 
5

 
—

Commercial construction
1

 
—

 
—

 
45

 
45

 
—

Total commercial loans
96

 
67

 
—

 
110

 
90

 
—

Impaired loans with an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
C&I
37

 
35

 
14

 
46

 
38

 
6

CRE
8

 
3

 
—

 
15

 
7

 
1

Commercial construction
6

 
4

 
—

 
5

 
3

 
—

Total commercial loans
51

 
42

 
14

 
66

 
48

 
7

Residential loans:
 
 
 
 
 
 
 
 
 
 
 
Residential mortgages - nonguaranteed
2,348

 
2,000

 
230

 
2,346

 
2,046

 
234

Home equity products
708

 
633

 
96

 
661

 
612

 
88

Residential construction
262

 
198

 
26

 
259

 
201

 
26

Total residential loans
3,318

 
2,831

 
352

 
3,266

 
2,859

 
348

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
Other direct
15

 
15

 
1

 
14

 
14

 
2

Indirect
83

 
82

 
4

 
46

 
46

 
2

Credit cards
15

 
15

 
3

 
21

 
21

 
5

Total consumer loans
113

 
112

 
8

 
81

 
81

 
9

Total impaired loans

$3,578

 

$3,052

 

$374

 

$3,523

 

$3,078

 

$364


1Amortized cost reflects charge-offs that have been recognized plus other amounts that have been applied to reduce the net book balance.

Included in the impaired loan balances above were $2.7 billion and $2.4 billion of accruing TDRs, at amortized cost, at September 30, 2013 and December 31, 2012, respectively, of which 96% and 95% were current, respectively. See Note 1, “Significant Accounting Policies,” to the Company's 2012 Annual Report on Form 10−K, for further information regarding the Company’s loan impairment policy.




 
Three Months Ended September 30
 
Nine Months Ended September 30
 
2013
 
2012
 
2013
 
2012
(Dollars in millions)
Average
Amortized
Cost
 
Interest
Income
Recognized1
 
Average
Amortized
Cost
 
Interest
Income
Recognized1
 
Average
Amortized
Cost
 
Interest
Income
Recognized1
 
Average
Amortized
Cost
 
Interest
Income
Recognized1
Impaired loans with no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
C&I

$84

 

$—

 

$97

 

$—

 

$58

 

$1

 

$107

 

$1

CRE
5

 
—

 
52

 
2

 
6

 
—

 
62

 
3

Commercial construction
1

 
—

 
64

 
—

 
1

 
—

 
71

 
1

Total commercial loans
90

 
—

 
213

 
2

 
65

 
1

 
240

 
5

Impaired loans with an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
C&I
35

 
—

 
44

 
—

 
25

 
1

 
42

 
1

CRE
3

 
—

 
21

 
—

 
3

 
—

 
22

 
—

Commercial construction
4

 
—

 
6

 
—

 
2

 
—

 
6

 
—

Total commercial loans
42

 
—

 
71

 
—

 
30

 
1

 
70

 
1

Residential loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgages - nonguaranteed
2,002

 
23

 
2,053

 
20

 
2,013

 
71

 
2,059

 
62

Home equity products
634

 
7

 
536

 
7

 
640

 
17

 
541

 
20

Residential construction
199

 
3

 
227

 
3

 
200

 
8

 
234

 
8

Total residential loans
2,835

 
33

 
2,816

 
30

 
2,853

 
96

 
2,834

 
90

Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other direct
15

 
—

 
13

 
—

 
16

 
—

 
13

 
—

Indirect
84

 
1

 
31

 
1

 
87

 
3

 
32

 
2

Credit cards
15

 
—

 
23

 
—

 
17

 
1

 
25

 
1

Total consumer loans
114

 
1

 
67

 
1

 
120

 
4

 
70

 
3

Total impaired loans

$3,081

 

$34

 

$3,167

 

$33

 

$3,068

 

$102

 

$3,214

 

$99

1 Of the interest income recognized during the three and nine months ended September 30, 2013, cash basis interest income was $1 million and $6 million, respectively.
Of the interest income recognized during the three and nine months ended September 30, 2012, cash basis interest income was $6 million and $15 million, respectively.
Nonperforming Assets 
(Dollars in millions)
September 30, 2013
 
December 31, 2012
Nonaccrual/NPLs:
 
 
 
Commercial loans:
 
 
 
C&I

$216

 

$194

CRE
42

 
66

Commercial construction
17

 
34

Residential loans:
 
 
 
Residential mortgages - nonguaranteed
464

 
775

Home equity products
209

 
341

Residential construction
79

 
112

Consumer loans:
 
 
 
Other direct
4

 
6

Indirect
6

 
19

Total nonaccrual/NPLs2
1,037

 
1,547

OREO1
196

 
264

Other repossessed assets
9

 
9

Nonperforming LHFS
59

 
37

Total NPAs

$1,301

 

$1,857

1Does not include foreclosed real estate related to loans insured by the FHA or the VA. Proceeds due from the FHA and the VA are recorded as a receivable in other assets until the funds are received and the property is conveyed. The receivable amount related to proceeds due from the FHA or the VA totaled $175 million and $140 million at September 30, 2013 and December 31, 2012, respectively.
2 Nonaccruing restructured loans are included in total nonaccrual/NPLs.

Troubled Debt Restructurings on Financing Receivables [Table Text Block] 
 
 Three Months Ended September 30, 20131
(Dollars in millions)
Number of Loans Modified
 
Principal
 Forgiveness 2
 
Rate
 Modification 3
 
Term Extension and/or Other Concessions
 
Total
Commercial loans:
 
 
 
 
 
 
 
 
 
C&I
28
 

$—

 

$—

 

$39

 

$39

CRE
—

 
—

 
—

 
—

 
—

Commercial construction
1

 
—

 
—

 
—

 
—

Residential loans:
 
 
 
 
 
 
 
 
 
Residential mortgages - nonguaranteed
332
 
—

 
61

 
14

 
75

Home equity products
715
 
—

 
19

 
12

 
31

Residential construction
25
 
—

 
4

 
—

 
4

Consumer loans:
 
 
 
 
 
 
 
 
 
Other direct
30
 
—

 
—

 
1

 
1

Indirect
883
 
—

 
—

 
18

 
18

Credit cards
97
 
—

 
—

 
—

 
—

Total TDRs
2,111

 

$—

 

$84

 

$84

 

$168


 
Nine Months Ended September 30, 20131
(Dollars in millions)
Number of Loans Modified
 
Principal
 Forgiveness 2
 
Rate
 Modification 3
 
Term Extension and/or Other Concessions
 
Total
Commercial loans:
 
 
 
 
 
 
 
 
 
C&I
124
 

$18

 

$2

 

$89

 

$109

CRE
5
 
—

 
4

 
1

 
5

Commercial construction
1
 
—

 
—

 
—

 
—

Residential loans:
 
 
 
 
 
 
 
 
 
Residential mortgages - nonguaranteed
1,245
 
—

 
122

 
84

 
206

Home equity products
2,153
 
—

 
56

 
60

 
116

Residential construction
242
 
—

 
22

 
3

 
25

Consumer loans:
 
 
 
 
 
 
 
 
 
Other direct
110
 
—

 
—

 
3

 
3

Indirect
2,617
 
—

 
—

 
50

 
50

Credit cards
483
 
—

 
2

 
—

 
2

Total TDRs
6,980
 

$18

 

$208

 

$290

 

$516

1Includes loans modified under the terms of a TDR that were charged-off during the period.
2Restructured loans which had forgiveness of amounts contractually due under the terms of the loan typically have had multiple concessions including rate modifications and/or term extensions. There were no charge-offs associated with principal forgiveness during the three months ended September 30, 2013. The total amount of charge-offs associated with principal forgiveness during the nine months ended September 30, 2013 was $2 million.
3Restructured loans which had a modification of the loan's contractual interest rate may also have had an extension of the loan's contractual maturity date and/or other concessions. The financial effect of modifying the interest rate on the loans modified as a TDR was immaterial to the financial statements during the three and nine months ended September 30, 2013.

 
Three Months Ended September 30, 20121
(Dollars in millions)
Number of Loans Modified
 
Principal
 Forgiveness 2
 
Rate
 Modification 3
 
Term Extension and/or Other Concessions
 
Total
Commercial loans:
 
 
 
 
 
 
 
 
 
C&I
87
 

$4

 

$1

 

$6

 

$11

CRE
4
 
5

 
—

 
—

 
5

Commercial construction
3
 
1

 
—

 
2

 
3

Residential loans:
 
 
 
 
 
 
 
 
 
Residential mortgages - nonguaranteed
279
 
—

 
20

 
1

 
21

Home equity products
431
 
—

 
26

 
4

 
30

Residential construction
165
 
—

 
—

 
25

 
25

Consumer loans:
 
 
 
 
 
 
 
 
 
Other direct
42
 
—

 
—

 
1

 
1

Indirect
1,000
 
—

 
—

 
17

 
17

Credit cards
281
 
—

 
2

 
—

 
2

Total TDRs
2,292
 

$10

 

$49

 

$56

 

$115



 
Nine Months Ended September 30, 20121
(Dollars in millions)
Number of Loans Modified
 
Principal
 Forgiveness 2
 
Rate
 Modification 3
 
Term Extension and/or Other Concessions
 
Total
Commercial loans:
 
 
 
 
 
 
 
 
 
C&I
270
 

$4

 

$3

 

$21

 

$28

CRE
27
 
17

 
7

 
2

 
26

Commercial construction
15
 
3

 
—

 
13

 
16

Residential loans:
 
 
 
 
 
 
 
 
 
Residential mortgages - nonguaranteed
703
 
—

 
61

 
2

 
63

Home equity products
1,272
 
—

 
90

 
7

 
97

Residential construction
340
 
—

 
1

 
54

 
55

Consumer loans:
 
 
 
 
 
 
 
 
 
Other direct
81
 
—

 
—

 
2

 
2

Indirect
1,795
 
—

 
—

 
31

 
31

Credit cards
1,144
 
—

 
7

 
—

 
7

Total TDRs
5,647
 

$24

 

$169

 

$132

 

$325

1Includes loans modified under the terms of a TDR that were charged-off during the period.
2Restructured loans which had forgiveness of amounts contractually due under the terms of the loan typically have had multiple concessions including rate modifications and/or term extensions. The total amount of charge-offs associated with principal forgiveness during the three and nine months ended September 30, 2012, was $1 million and $2 million, respectively.
3Restructured loans which had a modification of the loan's contractual interest rate may also have had an extension of the loan's contractual maturity date and/or other concessions. The financial effect of modifying the interest rate on the loans modified as a TDR was immaterial to the financial statements during the three and nine months ended September 30, 2012.


TroubledDebtRestructuingDefault [Table Text Block] 
For the three and nine months ended September 30, 2013, the table below represents defaults on loans that were first modified between the periods January 1, 2012 and September 30, 2013, that became 90 days or more delinquent, or were charged-off, during the three and nine months ended September 30, 2013.

 
Three Months Ended September 30, 2013
 
Nine Months Ended September 30, 2013
(Dollars in millions)
Number of Loans
 
Amortized Cost
 
Number of Loans
 
Amortized Cost
Commercial loans:
 
 
 
 
 
 
 
C&I
3
 

$—

 
45
 

$—

CRE
—

 
—

 
4
 
3

Commercial construction
—

 
—

 
1
 
—

Residential loans:
 
 
 
 
 
 
 
Residential mortgages
63
 
9

 
219
 
19

Home equity products
37
 
2

 
138
 
8

Residential construction
26
 
1

 
42
 
2

Consumer loans:
 
 
 
 
 
 
 
Other direct
5

 
—

 
14
 
—

Indirect
55

 
1

 
143
 
2

Credit cards
53
 
—

 
132
 
1

Total TDRs
242

 

$13

 
738
 

$35



For the three and nine months ended September 30, 2012, the table below represents defaults on loans that were first modified between the periods January 1, 2011 and September 30, 2012, that became 90 days or more delinquent, or were charged-off, during the three and nine months ended September 30, 2012.

 
Three Months Ended September 30, 2012
 
Nine Months Ended September 30, 2012
(Dollars in millions)
Number of Loans
 
Amortized Cost
 
Number of Loans
 
Amortized Cost
Commercial loans:
 
 
 
 
 
 
 
C&I
38
 

$1

 
63
 

$4

CRE
—

 
—

 
4
 
4

Commercial construction
2
 
—

 
9
 
6

Residential loans:
 
 
 
 
 
 
 
Residential mortgages
31
 
2

 
87
 
16

Home equity products
32
 
2

 
113
 
9

Residential construction
6
 
1

 
23
 
3

Consumer loans:
 
 
 
 
 
 
 
Other direct
2
 
—

 
4
 
—

Indirect
15
 
—

 
15
 
—

Credit cards
33
 
—

 
168
 
1

Total TDRs
159

 

$6

 
486
 

$43



Allowance for Credit Losses (Tables)
Activity in the Allowance for Credit Losses 
 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
2013
 
2012
 
2013
 
2012
Balance at beginning of period

$2,172

 

$2,350

 

$2,219

 

$2,505

Provision for loan losses
92

 
450

 
448

 
1,065

Provision for unfunded commitments
3

 
—

 
5

 
2

Loan charge-offs
(189
)
 
(585
)
 
(695
)
 
(1,445
)
Loan recoveries
43

 
74

 
144

 
162

Balance at end of period

$2,121

 

$2,289

 

$2,121

 

$2,289

 
 
 
 
 
 
 
 
Components:
 
 
 
 
 
 
 
ALLL

$2,071

 

$2,239

 
 
 
 
Unfunded commitments reserve1
50

 
50

 
 
 
 
Allowance for credit losses

$2,121

 

$2,289

 
 
 
 
1 The unfunded commitments reserve is recorded in other liabilities in the Consolidated Balance Sheets.
Activity in the ALLL by Segment 
 
Three Months Ended September 30, 2013
(Dollars in millions)
Commercial
 
Residential
 
Consumer
 
Total
Balance at beginning of period

$919

 

$1,046

 

$160

 

$2,125

Provision for loan losses
77

 
(6
)
 
21

 
92

Loan charge-offs
(52
)
 
(109
)
 
(28
)
 
(189
)
Loan recoveries
13

 
21

 
9

 
43

Balance at end of period

$957

 

$952

 

$162

 

$2,071

 
 
 
 
 

 

 
Three Months Ended September 30, 2012
(Dollars in millions)
Commercial
 
Residential
 
Consumer
 
Total
Balance at beginning of period

$887

 

$1,277

 

$136

 

$2,300

Provision for loan losses
127

 
300

 
23

 
450

Loan charge-offs
(126
)
 
(425
)
 
(34
)
 
(585
)
Loan recoveries
55

 
10

 
9

 
74

Balance at end of period

$943

 

$1,162

 

$134

 

$2,239

 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2013
(Dollars in millions)
Commercial
 
Residential
 
Consumer
 
Total
Balance at beginning of period

$902

 

$1,131

 

$141

 

$2,174

Provision for loan losses
183

 
184

 
81

 
448

Loan charge-offs
(176
)
 
(430
)
 
(89
)
 
(695
)
Loan recoveries
48

 
67

 
29

 
144

Balance at end of period

$957

 

$952

 

$162

 

$2,071

 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2012
(Dollars in millions)
Commercial
 
Residential
 
Consumer
 
Total
Balance at beginning of period

$964

 

$1,354

 

$139

 

$2,457

Provision for loan losses
214

 
788

 
63

 
1,065

Loan charge-offs
(346
)
 
(1,001
)
 
(98
)
 
(1,445
)
Loan recoveries
111

 
21

 
30

 
162

Balance at end of period

$943

 

$1,162

 

$134

 

$2,239

Loans Held for Investment portfolio and Related Allowance for Loan and Lease Losses 
 
September 30, 2013
 
Commercial
 
Residential
 
Consumer
 
Total
(Dollars in millions)
Carrying
Value
 
Associated
ALLL
 
Carrying
Value
 
Associated
ALLL
 
Carrying
Value
 
Associated
ALLL
 
Carrying
Value
 
Associated
ALLL
Individually evaluated

$109

 

$14

 

$2,831

 

$352

 

$112

 

$8

 

$3,052

 

$374

Collectively evaluated
61,326

 
943

 
39,894

 
600

 
19,752

 
154

 
120,972

 
1,697

Total evaluated
61,435

 
957

 
42,725

 
952

 
19,864

 
162

 
124,024

 
2,071

LHFI at fair value
—

 
—

 
316

 
—

 
—

 
—

 
316

 
—

Total LHFI

$61,435

 

$957

 

$43,041

 

$952

 

$19,864

 

$162

 

$124,340

 

$2,071

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2012
 
Commercial
 
Residential
 
Consumer
 
Total
(Dollars in millions)
Carrying
Value
 
Associated
ALLL
 
Carrying
Value
 
Associated
ALLL
 
Carrying
Value
 
Associated
ALLL
 
Carrying
Value
 
Associated
ALLL
Individually evaluated

$138

 

$7

 

$2,859

 

$348

 

$81

 

$9

 

$3,078

 

$364

Collectively evaluated
58,750

 
895

 
39,961

 
783

 
19,302

 
132

 
118,013

 
1,810

Total evaluated
58,888

 
902

 
42,820

 
1,131

 
19,383

 
141

 
121,091

 
2,174

LHFI at fair value
—

 
—

 
379

 
—

 
—

 
—

 
379

 
—

Total LHFI

$58,888

 

$902

 

$43,199

 

$1,131

 

$19,383

 

$141

 

$121,470

 

$2,174

Goodwill and Other Intangible Assets (Tables)
Schedule of Goodwill [Table Text Block] 
(Dollars in millions)
Retail
Banking
 
Diversified
Commercial
Banking
 
CIB
 
W&IM
 
Consumer Banking and Private Wealth Management
 
Wholesale Banking
 
Total
Balance, January 1, 2013

$—

 

$—

 

$—

 

$—

 

$3,962

 

$2,407

 

$6,369

Intersegment transfers
—

 
—

 
—

 
—

 
300

 
(300
)
 
—

Balance, September 30, 2013

$—

 

$—

 

$—

 

$—

 

$4,262

 

$2,107

 

$6,369

Balance, January 1, 2012

$4,854

 

$928

 

$180

 

$382

 

$—

 

$—

 

$6,344

Intersegment transfers
(4,854
)
 
(928
)
 
(180
)
 
(382
)
 
3,930

 
2,414

 
—

Acquisition of FirstAgain, LLC
—

 
—

 
—

 
—

 
32

 
—

 
32

Impairment of GenSpring
—

 
—

 
—

 
—

 
—

 
(7
)
 
(7
)
Balance, September 30, 2012

$—

 

$—

 

$—

 

$—

 

$3,962

 

$2,407

 

$6,369

Schedule of Finite-Lived Intangible Assets by Major Class [Table Text Block] 
(Dollars in millions)
Core Deposit  
Intangibles
 
 MSRs -
Fair Value
 
Other
 
Total
Balance, January 1, 2013

$17

 

$899

 

$40

 

$956

Amortization
(10
)
 
—

 
(8
)
 
(18
)
MSRs originated
—

 
302

 
—

 
302

Changes in fair value:
 
 
 
 
 
 
 
Due to changes in inputs and assumptions 1
—

 
260

 
—

 
260

Other changes in fair value 2
—

 
(212
)
 
—

 
(212
)
Sale of MSRs
—

 
(1
)
 
—

 
(1
)
Balance, September 30, 2013

$7

 

$1,248

 

$32

 

$1,287

Balance, January 1, 2012

$38

 

$921

 

$58

 

$1,017

Amortization
(17
)
 
—

 
(14
)
 
(31
)
MSRs originated
—

 
244

 
—

 
244

Changes in fair value:
 
 
 
 
 
 
 
Due to changes in inputs and assumptions 1
—

 
(157
)
 
—

 
(157
)
Other changes in fair value 2
—

 
(173
)
 
—

 
(173
)
Sale of MSRs
—

 
(4
)
 
—

 
(4
)
Balance, September 30, 2012

$21

 

$831

 

$44

 

$896

1 Primarily reflects changes in discount rates and prepayment speed assumptions, due to changes in interest rates.
2 Represents changes due to the collection of expected cash flows, net of accretion, due to the passage of time.
Key Characteristics, Inputs, and Economic Assumptions Used to Estimate the Fair Value of the Company's MSRs 
(Dollars in millions)
September 30, 2013
 
December 31, 2012
Fair value of retained MSRs

$1,248

 

$899

Prepayment rate assumption (annual)
9
%
 
16
%
Decline in fair value from 10% adverse change

$40

 

$50

Decline in fair value from 20% adverse change
77

 
95

Discount rate (annual)
12
%
 
11
%
Decline in fair value from 10% adverse change

$62

 

$37

Decline in fair value from 20% adverse change
118

 
70

Weighted-average life (in years)
7.3

 
4.9

Weighted-average coupon
4.4
%
 
4.8
%
Certain Transfers of Financial Assets and Variable Interest Entities (Tables)
Asset Transfers in Which the Company has Continuing Economic Involvement 
 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
2013
 
2012
 
2013
 
2012
Cash flows on interests held1:
 
 
 
 
 
 
 
  Residential Mortgage Loans2

$8

 

$6

 

$24

 

$21

  Commercial and Corporate Loans
—

 
1

 
1

 
1

  CDO Securities
—

 
1

 
1

 
1

    Total cash flows on interests held

$8

 

$8

 

$26

 

$23

Servicing or management fees1:
 
 
 
 
 
 
 
  Residential Mortgage Loans2

$1

 

$1

 

$2

 

$2

  Commercial and Corporate Loans
2

 
2

 
7

 
7

    Total servicing or management fees

$3

 

$3

 

$9

 

$9


1 The transfer activity is related to unconsolidated VIEs.
2 Does not include GSE mortgage loan transfers
Portfolio Balances and Delinquency Balances Based on 90 Days or More Past Due and Net Charge-offs Related to Managed Portfolio Loans 
 
Portfolio Balance1
 
Past Due2
 
Net Charge-offs
 
September 30, 2013
 
December 31, 2012
 
September 30, 2013
 
December 31, 2012
 
Three Months Ended September 30
 
Nine Months Ended September 30
 
(Dollars in millions)
2013
 
2012
 
2013
 
2012
Type of loan:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial

$61,435

 

$58,888

 

$298

 

$320

 

$39

 

$71

 

$128

 

$235

Residential
43,041

 
43,199

 
1,385

 
1,941

 
88

 
415

 
363

 
980

Consumer
19,864

 
19,383

 
517

 
68

 
19

 
25

 
60

 
68

Total loan portfolio
124,340

 
121,470

 
2,200

 
2,329

 
146

 
511

 
551

 
1,283

Managed securitized loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
1,756

 
1,767

 
16

 
23

 
—

 
—

 
—

 
—

Residential
102,737

 
104,877

 
1,411

3 
2,186

3 
5

 
7

 
19

 
23

Total managed loans

$228,833

 

$228,114

 

$3,627

 

$4,538

 

$151

 

$518

 

$570

 

$1,306


1Excludes $2.5 billion and $3.4 billion of LHFS at September 30, 2013 and December 31, 2012, respectively.
2Excludes $59 million and $38 million of past due LHFS at September 30, 2013 and December 31, 2012, respectively.
3Excludes loans that have completed the foreclosure or short sale process (i.e., involuntary prepayments).
Net Income/(Loss) Per Common Share (Tables)
Reconciliation of Net Income/(Loss) to Net Income/(Loss) Available to Common Shareholders
 
 
Three Months Ended September 30
 
Nine Months Ended September 30
(In millions, except per share data)
 
2013
 
2012
 
2013
 
2012
Net income
 

$189

 

$1,077

 

$918

 

$1,602

Preferred dividends
 
(9
)
 
(2
)
 
(28
)
 
(8
)
Dividends and undistributed earnings allocated to unvested shares
 
(1
)
 
(9
)
 
(6
)
 
(13
)
Net income available to common shareholders
 

$179

 

$1,066

 

$884

 

$1,581

Average basic common shares
 
534

 
535

 
535

 
534

Effect of dilutive securities:
 
 
 
 
 
 
 
 
Stock options
 
1

 
1

 
1

 
1

Restricted stock
 
4

 
3

 
3

 
3

Average diluted common shares
 
539

 
539

 
539

 
538

Net income per average common share - diluted
 

$0.33

 

$1.98

 

$1.64

 

$2.94

Net income per average common share - basic
 

$0.33

 

$1.99

 

$1.65

 

$2.96

Employee Benefit Plans (Tables)
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] 
 
2013
 
2012
Dividend yield
1.28
%
 
0.91
%
Expected stock price volatility
30.98

 
39.88

Risk-free interest rate (weighted average)
1.02

 
1.07

Expected life of options
6 years

 
6 years

Stock-Based Compensation Expense Recognized in Noninterest Expense 
 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
2013
 
2012
 
2013
 
2012
Stock-based compensation expense:
 
 
 
 
 
 
 
Stock options

$1

 

$2

 

$5

 

$9

Restricted stock
9

 
8

 
24

 
22

RSUs
2

 
6

 
15

 
24

Total stock-based compensation expense

$12

 

$16

 

$44

 

$55

Schedule of Net Benefit Costs [Table Text Block] 
 
Three Months Ended September 30
 
2013
 
2012
(Dollars in millions)
Pension Benefits
 
Other Postretirement Benefits
 
Pension Benefits
 
Other Postretirement Benefits
Interest cost

$28

 

$1

 

$30

 

$2

Expected return on plan assets
(46
)
 
(1
)
 
(43
)
 
(2
)
Recognized net actuarial loss
6

 
—

 
6

 
—

Settlement loss
—

 
—

 
2

1 
—

Net periodic benefit

($12
)
 

$—

 

($5
)
 

$—

    
 
Nine Months Ended September 30
 
2013
 
2012
(Dollars in millions)
Pension Benefits
 
Other Postretirement Benefits
 
Pension Benefits
 
Other Postretirement Benefits
Interest cost

$84

 

$4

 

$90

 

$5

Expected return on plan assets
(139
)
 
(4
)
 
(129
)
 
(5
)
Recognized net actuarial loss
19

 
—

 
18

 
—

Settlement loss
—

 
—

 
2

1 
—

Net periodic benefit

($36
)
 

$—

 

($19
)
 

$—


Derivative Financial Instruments (Tables)
Derivative Positions 
 
September 30, 2013
 
Asset Derivatives
 
Liability Derivatives
(Dollars in millions)
Balance Sheet
Classification
 
Notional
Amounts
 
Fair
Value
 
Balance Sheet
Classification
 
Notional
Amounts
 
Fair
Value
Derivatives designated in cash flow hedging relationships 1
 
 
 
 
 
 
 
 
 
 
Interest rate contracts hedging
Floating rate loans
Trading assets
 

$17,250

  

$563

 
Trading liabilities
 

$—

  

$—

Derivatives designated in fair value hedging relationships 2
 
 
 
 
 
 
 
 
 
 
Interest rate contracts covering:
Fixed rate debt
Trading assets
 
2,000

 
61

 
Trading liabilities
 
900

 
10

Derivatives not designated as hedging instruments 3
 
 
 
 
 
 
 
 
 
 
Interest rate contracts covering:
 
 
 
 
 
 
 
 
 
 
 
Fixed rate debt
Trading assets
 
—

  
—

 
Trading liabilities
 
60

  
8

MSRs
Other assets
 
3,240

  
51

 
Other liabilities
 
8,916

  
79

LHFS, IRLCs 4
Other assets
 
2,397

 
23

 
Other liabilities
 
5,525

 
78

Trading activity 5
Trading assets
 
69,235

 
3,285

 
Trading liabilities
 
72,926

 
3,102

Foreign exchange rate contracts covering:
 
 
 
 
 
 
 
 
 
 
Commercial loans
Trading assets
 
—

  
—

 
Trading liabilities
 
34

  
—

Trading activity
Trading assets
 
2,589

  
63

 
Trading liabilities
 
2,537

  
61

Credit contracts covering:
 
 
 
 
 
 
 
 
 
 
 
Loans
Other assets
 
—

  
—

 
Other liabilities
 
490

  
6

Trading activity 6
Trading assets
 
1,937

 
39

 
Trading liabilities
 
1,941

 
33

Equity contracts - Trading activity 5
Trading assets
 
18,722

 
2,079

 
Trading liabilities
 
24,010

 
2,242

Other contracts:
 
 
 
 
 
 
 
 
 
 
 
IRLCs and other 7
Other assets
 
2,156

  
47

 
Other liabilities
 
212

 
3

Commodities
Trading assets
 
227

  
19

 
Trading liabilities
 
221

  
19

Total
 
 
100,503

  
5,606

 
 
 
116,872

  
5,631

Total derivatives
 
 

$119,753

  

$6,230

 
 
 

$117,772

  

$5,641

Total gross derivatives, before netting
 
 
 

$6,230

 
 
 
 
 

$5,641

Less: Legally enforceable master netting agreements
 
 
 
(4,180
)
 
 
 
 
 
(4,180
)
Less: Cash collateral received/paid
 
 
 
(521
)
 
 
 
 
 
(966
)
Total derivatives, after netting 8
 
 
 

$1,529

 
 
 
 
 

$495

1 See “Cash Flow Hedges” in this Note for further discussion.
2 See “Fair Value Hedges” in this Note for further discussion.
3 See “Economic Hedging and Trading Activities” in this Note for further discussion.
4 Amount includes $0.9 billion of notional amounts related to interest rate futures. These futures contracts settle in cash daily, one day in arrears. The derivative asset or liability associated with the one day lag is included in the fair value column of this table.
5 Amounts include $16.1 billion and $0.2 billion of notional related to interest rate futures and equity futures, respectively. These futures contracts settle in cash daily, one day in arrears. The derivative assets/liabilities associated with the one day lag are included in the fair value column of this table.
6 Asset and liability amounts include $4 million and $3 million, respectively, of notional from purchased and written credit risk participation agreements, respectively, whose notional is calculated as the notional of the derivative participated adjusted by the relevant RWA conversion factor.
7 Includes a notional amount that is based on the number of Visa Class B shares, 3.2 million, the conversion ratio from Class B shares to Class A shares, and the Class A share price at the derivative inception date of May 28, 2009. This derivative was established upon the sale of Class B shares in the second quarter of 2009 as discussed in Note 12, “Reinsurance Arrangements and Guarantees.” The fair value of the derivative liability, which relates to a notional amount of $134 million, is immaterial and is recognized in other liabilities in the Consolidated Balance Sheets.
8 Amounts represent total derivatives after offsetting cash collateral received from and paid to the same derivative counterparties and impact of netting derivative assets and derivative liabilities when a legally enforceable master netting agreement or similar agreement exists. In some situations, trading derivatives are offset with derivatives used for risk management purposes that are recorded in other assets or other liabilities. As a result, the Company may reclass balances between trading assets or trading liabilities and other assets or other liabilities based on the predominant account.


 
December 31, 2012
 
Asset Derivatives
 
Liability Derivatives
(Dollars in millions)
Balance Sheet
Classification
 
Notional
Amounts
 
Fair
Value
 
Balance Sheet
Classification
 
Notional
Amounts
 
Fair
Value
Derivatives designated in cash flow hedging relationships 1
 
 
 
 
 
 
 
 
 
 
Interest rate contracts hedging:
Floating rate loans
Trading assets
 

$17,350

  

$771

 
Trading liabilities
 

$—

 

$—

Derivatives designated in fair value hedging relationships 2
Interest rate contracts covering:
 
 
 
 
 
 
 
 
 
 
 
Fixed rate debt
Trading assets
 
1,000

 
61

 
Trading liabilities
 
—

 
—

Derivatives not designated as hedging instruments 3
Interest rate contracts covering:
 
 
 
 
 
 
 
 
 
 
 
Fixed rate debt
Trading assets
 
—

  
—

 
Trading liabilities
 
60

  
10

Corporate bonds and loans
 
 


  


 

 


  


MSRs
Other assets
 
6,185

  
150

 
Trading/Other liabilities
 
12,643

  
33

LHFS, IRLCs, LHFI-FV 4
Other assets
 
2,333

 
6

 
Other liabilities
 
7,076

 
15

Trading activity 5
Trading assets
 
81,930

 
6,044

 
Trading liabilities
 
86,037

  
5,777

Foreign exchange rate contracts covering:
 
 
 
 
 
 
 
 
 
 
Foreign-denominated debt and commercial loans
Trading assets
 
—

   
—

 
Trading liabilities
 
34

  
—

Trading activity
Trading assets
 
2,451

   
66

 
Trading liabilities
 
2,326

  
63

Credit contracts covering:
 
 
 
 
 
 
 
 
 
 
 
Loans
Trading/Other assets
 
—

   
—

 
Other liabilities
 
445

  
8

Trading activity 6
Trading assets
 
1,958

 
55

 
Trading liabilities
 
2,081

 
49

Equity contracts - Trading activity 5
Trading assets
 
15,748

 
1,342

 
Trading liabilities
 
22,184

   
1,529

Other contracts:
 
 
 
 
 
 
 
 
 
 
 
IRLCs and other 7
Trading/Other assets
 
6,783

  
132

 
Other liabilities
 
142

 
1

Commodities
Trading assets
 
255

  
29

 
Trading liabilities
 
255

   
29

Total
 
 
117,643

 
7,824

 
 
 
133,283

 
7,514

Total derivatives
 
 

$135,993

 

$8,656

 
 
 

$133,283

 

$7,514

Total gross derivatives, before netting
 
 
 

$8,656

 
 
 
 
 

$7,514

Less: Legally enforceable master netting agreements
 
 
 
(5,843
)
 
 
 
 
 
(5,843
)
Less: Cash collateral received/paid
 
 
 
(730
)
 
 
 
 
 
(1,259
)
Total derivatives, after netting 8
 
 
 

$2,083

 
 
 
 
 

$412

1 See “Cash Flow Hedges” in this Note for further discussion.
2 See “Fair Value Hedges” in this Note for further discussion.
3 See “Economic Hedging and Trading Activities” in this Note for further discussion.
4 Amount includes $1.7 billion of notional amounts related to interest rate futures. These futures contracts settle in cash daily, one day in arrears. The derivative liability associated with the one day lag is included in the fair value column of this table.
5 Amounts include $16.2 billion and $0.8 billion of notional related to interest rate futures and equity futures, respectively. These futures contracts settle in cash daily, one day in arrears. The derivative asset associated with the one day lag is included in the fair value column of this table.
6 Asset and liability amounts each include $3 million of notional from purchased and written interest rate swap risk participation agreements, respectively, whose notional is calculated as the notional of the interest rate swap participated adjusted by the relevant RWA conversion factor.
7 Includes a notional amount that is based on the number of Visa Class B shares, 3.2 million, the conversion ratio from Class B shares to Class A shares, and the Class A share price at the derivative inception date of May 28, 2009. This derivative was established upon the sale of Class B shares in the second quarter of 2009 as discussed in Note 12, “Reinsurance Arrangements and Guarantees.” The fair value of the derivative liability, which relates to a notional amount of $134 million, is immaterial and is recognized in other liabilities in the Consolidated Balance Sheets.
8 Amounts represent total derivatives after offsetting cash collateral received from and paid to the same derivative counterparties and impact of netting derivative assets and derivative liabilities when a legally enforceable master netting agreement or similar agreement exists. In some situations, trading derivatives are offset with derivatives used for risk management purposes that are recorded in other assets or other liabilities. As a result, the Company may reclass balances between trading assets or trading liabilities and other assets or other liabilities based on the predominant account.
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] 
 
 
 
 
 
 
Three Months Ended September 30, 2013
 
Nine Months Ended September 30, 2013
(Dollars in millions)
Amount of pre-tax gain
recognized in
OCI on Derivatives
(Effective  Portion)
 
Classification of
gain/(loss)
reclassified from    
AOCI into Income
(Effective Portion)
 
Amount of pre-tax gain
reclassified from
AOCI into Income
(Effective Portion)
 
Amount of pre-tax gain/(loss)
recognized in
OCI on Derivatives
(Effective  Portion)
 
Amount of pre-tax gain
reclassified from
AOCI into Income
(Effective Portion)
Derivatives in cash flow hedging relationships:
 
 
 
 
 
 
 
 
Interest rate contracts hedging forecasted debt

$—

 
Interest on long-term debt
 

$—

 

($2
)
 

$—

Interest rate contracts hedging floating rate loans1
60

 
Interest and fees on loans
 
80

 
17

 
246

Total

$60

 
 
 

$80

 

$15

 

$246

1 During the three and nine months ended September 30, 2013, the Company also reclassified $21 million and $69 million, respectively, in pre-tax gains from AOCI into net interest income. These gains related to hedging relationships that have been previously terminated or de-designated and are reclassified into earnings in the same period in which the forecasted transaction occurs.

 
Three Months Ended September 30, 2013
 
Nine Months Ended September 30, 2013
(Dollars in millions)
Amount of gain on Derivatives
recognized in Income
 
Amount of loss on related Hedged Items
recognized in Income
 
Amount of loss recognized in
Income on Hedges
(Ineffective Portion)
 
Amount of loss on Derivatives
recognized in Income
 
Amount of gain on related Hedged Items
recognized in Income
 
Amount of loss recognized in
Income on Hedges
(Ineffective Portion)
Derivatives in fair value hedging relationships:
 
 
 
 
 
 
Interest rate contracts hedging fixed rate debt1

$4

 

($6
)
 

($2
)
 

($19
)
 

$18

 

($1
)
1 Amounts are recognized in trading income in the Consolidated Statements of Income.

 
(Dollars in millions)
Classification of gain/(loss)
recognized in Income on Derivatives
 
Amount of gain/(loss)
recognized in Income
on Derivatives for the
Three Months Ended
September 30, 2013
 
Amount of gain/(loss)
recognized in Income
on Derivatives for the
Nine Months Ended
September 30, 2013
Derivatives not designated as hedging instruments:
 
 
 
 
 
Interest rate contracts covering:
 
 
 
 
 
Fixed rate debt
Trading income
 

($1
)
 

$1

MSRs
Mortgage servicing related income
 
(18
)
 
(232
)
LHFS, IRLCs
Mortgage production related (loss)/income
 
(33
)
 
258

Trading activity
Trading income
 
20

 
46

Foreign exchange rate contracts covering:
 
 
 
 
 
Commercial loans
Trading income
 
2

 
1

Trading activity
Trading income
 
(9
)
 
17

Credit contracts covering:
 
 
 
 
 
Loans
Other income
 
(1
)
 
(3
)
Trading activity
Trading income
 
6

 
16

Equity contracts - trading activity
Trading income
 
1

 
(14
)
Other contracts:
 
 
 
 
 
IRLCs
Mortgage production related (loss)/income
 
47

 
74

Total
 
 

$14

 

$164




 
Three Months Ended September 30, 2012
 
Nine Months Ended September 30, 2012
(Dollars in millions)
Amount of pre-tax gain/(loss)
recognized in
OCI on Derivatives
(Effective  Portion)
 
Classification of gain/(loss)
reclassified from
AOCI into Income
(Effective Portion)
 
Amount of pre-tax gain/(loss)
reclassified from
AOCI into Income
(Effective Portion)
 
Amount of pre-tax gain/(loss)
recognized in
OCI on Derivatives
(Effective Portion)
 
Amount of pre-tax gain/(loss)
reclassified from
AOCI into Income
(Effective Portion)
Derivatives in cash flow hedging relationships:
 
 
 
 
 
 
 
 
Equity contracts hedging Securities AFS 1

($10
)
 
Net securities gains
 

($365
)
 

($171
)
 

($365
)
Interest rate contracts hedging Floating rate loans 2
80

 
Interest and fees on loans
 
84

 
247

 
250

Total

$70

 
 
 

($281
)
 

$76

 

($115
)
1 During both the three and nine months ended September 30, 2012, the Company also recognized $60 million of pre-tax gains directly into net securities gains related to mark-to-market changes of the Coke hedging contracts when the cash flow hedging relationship failed to qualify for hedge accounting.
2 During the three and nine months ended September 30, 2012, the Company also reclassified $34 million and $140 million, respectively, in pre-tax gains from AOCI into net interest income. These gains related to hedging relationships that have been previously terminated or de-designated and are reclassified into earnings in the same period in which the forecasted transaction occurs.

 
Three Months Ended September 30, 2012
 
Nine Months Ended September 30, 2012
(Dollars in millions)
Amount of gain on Derivatives recognized in Income
 
Amount of loss on related Hedged Items
recognized in Income
 
Amount of gain/(loss) recognized in Income on Hedges (Ineffective Portion)
 
Amount of gain on Derivatives recognized in Income
 
Amount of loss on related Hedged Items
recognized in Income
 
Amount of gain/(loss) recognized in Income on Hedges (Ineffective Portion)
Derivatives in fair value hedging relationships1:
 
 
 
 
 
 
   Interest rate contracts hedging Fixed rate debt

$3

 

($3
)
 

$—

 

$10

 

($10
)
 

$—

Interest rate contracts hedging Securities AFS
—

 
—

 
—

 
1

 
(1
)
 
—

Total

$3

 

($3
)
 

$—

 

$11

 

($11
)
 

$—

1 Amounts are recognized in trading income in the Consolidated Statements of Income.

(Dollars in millions)
Classification of gain/(loss)
recognized in Income on Derivatives
 
Amount of gain/(loss)
recognized in Income
on Derivatives for the
Three Months Ended
September 30, 2012
 
Amount of gain/(loss)
recognized in Income
on Derivatives for the
Nine Months Ended September 30, 2012
Derivatives not designated as hedging instruments:
 
 
Interest rate contracts covering:
 
 
 
 
 
Fixed rate debt
Trading income
 

($1
)
 

($2
)
MSRs
Mortgage servicing related income
 
101

 
297

LHFS, IRLCs, LHFI-FV
Mortgage production related (loss)/income
 
(153
)
 
(323
)
Trading activity
Trading income
 
17

 
71

Foreign exchange rate contracts covering:
 
 

 

Commercial loans and foreign-denominated debt
Trading income
 
—

 
129

Trading activity
Trading income
 
(2
)
 
13

Credit contracts covering:
 
 

 

Loans 1
Other income
 
(3
)
 
(6
)
Trading activity
Trading income
 
6

 
18

Equity contracts - trading activity
Trading income
 
(3
)
 
10

Other contracts:
 
 

 

IRLCs
Mortgage production related (loss)/income
 
332

 
774

Total
 
 

$294

 

$981

1For the six months ended June 30, 2012, losses of $3 million were recorded in trading income.
Netting of financial instruments - derivatives [Table Text Block] 
(Dollars in millions)
Gross
Amount
 
Amount
Offset
 
Net Amount
Presented in
Consolidated
Balance Sheets
 
Held/Pledged
Financial
Instruments
 
Net
Amount
September 30, 2013
 
 
 
 
 
 
 
 
 
Derivative financial assets:
 
 
 
 
 
 
 
 
 
Derivatives subject to master netting arrangement or similar arrangement

$5,478

 

$4,282

 

$1,196

 

$54

 

$1,142

Derivatives not subject to master netting arrangement or similar arrangement
47

 
—

 
47

 
—

 
47

Exchange traded derivatives
705

 
419

 
286

 
—

 
286

Total derivative financial assets

$6,230

 

$4,701

 

$1,529

1 

$54

 

$1,475

Derivative financial liabilities:
 
 
 
 
 
 
 
 
 
Derivatives subject to master netting arrangement or similar arrangement

$5,051

 

$4,727

 

$324

 

$114

 

$210

Derivatives not subject to master netting arrangement or similar arrangement
169

 
—

 
169

 
—

 
169

Exchange traded derivatives
421

 
419

 
2

 
2

 
—

Total derivative financial liabilities

$5,641

 

$5,146

 

$495

2 

$116

 

$379

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2012
 
 
 
 
 
 
 
 
 
Derivative financial assets:
 
 
 
 
 
 
 
 
 
Derivatives subject to master netting arrangement or similar arrangement

$8,041

 

$6,273

 

$1,768

 

$94

 

$1,674

Derivatives not subject to master netting arrangement or similar arrangement
132

 
—

 
132

 
—

 
132

Exchange traded derivatives
483

 
300

 
183

 
—

 
183

Total derivative financial assets

$8,656

 

$6,573

 

$2,083

1 

$94

 

$1,989

Derivative financial liabilities:
 
 
 
 
 
 
 
 
 
Derivatives subject to master netting arrangement or similar arrangement

$7,051

 

$6,802

 

$249

 

$37

 

$212

Derivatives not subject to master netting arrangement or similar arrangement
163

 
—

 
163

 
—

 
163

Exchange traded derivatives
300

 
300

 
—

 
—

 
—

Total derivative financial liabilities

$7,514

 

$7,102

 

$412

2 

$37

 

$375

1 At September 30, 2013, $1.5 billion, net of $517 million offsetting cash collateral, is recognized in trading assets and $58 million, net of $4 million offsetting cash collateral, is recognized in other assets within the Company's Consolidated Balance Sheets. At December 31, 2012, $1.9 billion, net of $730 million offsetting cash collateral, is recognized in trading assets and $178 million is recognized in other assets within the Company's Consolidated Balance Sheets.
2 At September 30, 2013, $444 million, net of $934 million offsetting cash collateral, is recognized in trading liabilities and $49 million, net of $32 million offsetting cash collateral, is recognized in other liabilities within the Company's Consolidated Balance Sheets. At December 31, 2012, $397 million, net of $1.3 billion offsetting cash collateral, is recognized in trading liabilities and $15 million is recognized in other liabilities within the Company's Consolidated Balance Sheets.
Reinsurance Arrangements and Guarantees (Tables)
Schedule Of Remaining Outstanding Balance Of Loans Sold [Table Text Block] 
 
Remaining Outstanding Balance by Year of Sale
(Dollars in billions)
2005
 
2006
 
2007
 
2008
 
2009
 
2010
 
2011
 
2012
 
2013

 
Total    
GSE1

$2.1

 

$2.3

 

$4.5

 

$4.0

 

$11.5

 

$7.7

 

$8.5

 

$18.0

 

$18.4

 

$77.0

Ginnie Mae1
0.4

 
0.3

 
0.3

 
1.3

 
3.3

 
2.6

 
2.1

 
4.0

 
3.1

 
17.4

Non-agency
3.3

 
4.9

 
3.2

 
—

 
—

 
—

 
—

 
—

 
—

 
11.4

Total

$5.8

 

$7.5

 

$8.0

 

$5.3

 

$14.8

 

$10.3

 

$10.6

 

$22.0

 

$21.5

 

$105.8

1 Balances based on loans currently serviced by the Company and excludes loans serviced by others and certain loans in foreclosure.
Mortgage Loan Repurchase Losses 
 
 
Three Months Ended September 30
 
Nine Months Ended September 30
(Dollars in millions)
 
2013
 
2012
 
2013
 
2012
Balance at beginning of period
 

$363

 

$434

 

$632

 

$320

Repurchase provision
 
73

 
371

 
102

 
701

Charge-offs
 
(155
)
 
(111
)
 
(453
)
 
(327
)
Balance at end of period
 

$281

 

$694

 

$281

 

$694

Fair Value Election and Measurement (Tables)
Assets and Liabilities Measured at Fair Value on a Recurring Basis 
cted.
 
September 30, 2013
 
Fair Value Measurements
 
 
 
 
(Dollars in millions)
Level 1
 
Level 2
 
Level 3
 
Netting
 Adjustments 1
 
Assets/Liabilities
at Fair Value
Assets
 
 
 
 
 
 
 
 
 
Trading assets:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities

$199

 

$—

 

$—

 

$—

 

$199

Federal agency securities
—

 
647

 
—

 
—

 
647

U.S. states and political subdivisions
—

 
52

 
—

 
—

 
52

MBS - agency
—

 
332

 
—

 
—

 
332

CDO/CLO securities
—

 
2

 
63

 
—

 
65

ABS
—

 
—

 
6

 
—

 
6

Corporate and other debt securities
—

 
601

 
—

 
—

 
601

CP
—

 
71

 
—

 
—

 
71

Equity securities
104

 
—

 
—

 
—

 
104

Derivative contracts 2
705

 
5,404

 
—

 
(4,638
)
 
1,471

Trading loans
—

 
2,183

 
—

 
—

 
2,183

Total trading assets
1,008

 
9,292

 
69

 
(4,638
)
 
5,731

Securities AFS:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
771

 
—

 
—

 
—

 
771

Federal agency securities
—

 
2,171

 
—

 
—

 
2,171

U.S. states and political subdivisions
—

 
211

 
34

 
—

 
245

MBS - agency
—

 
18,358

 
—

 
—

 
18,358

MBS - private
—

 
—

 
166

 
—

 
166

ABS
—

 
75

 
21

 
—

 
96

Corporate and other debt securities
—

 
38

 
5

 
—

 
43

   Other equity securities 3
107

 
—

 
669

 
—

 
776

Total securities AFS
878

 
20,853

 
895

 
—

 
22,626

LHFS:
 
 
 
 
 
 
 
 
 
Residential loans
—

 
1,924

 
4

 
—

 
1,928

Corporate and other loans
—

 
312

 
—

 
—

 
312

Total LHFS
—

 
2,236

 
4

 
—

 
2,240

LHFI
—

 
—

 
316

 
—

 
316

MSRs
—

 
—

 
1,248

 
—

 
1,248

Other assets 2,4
—

 
74

 
47

 
(63
)
 
58

Liabilities
 
 
 
 
 
 
 
 
 
Trading liabilities:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
584

 
—

 
—

 
—

 
584

   MBS - agency
—

 
1

 
—

 
—

 
1

Corporate and other debt securities
—

 
230

 
—

 
—

 
230

Equity securities
5

 
—

 
—

 
—

 
5

Derivative contracts 2
421

 
5,054

 
—

 
(5,031
)
 
444

Total trading liabilities
1,010

 
5,285

 
—

 
(5,031
)
 
1,264

Brokered time deposits
—

 
784

 
—

 
—

 
784

Long-term debt
—

 
1,593

 
—

 
—

 
1,593

Other liabilities 2,4,5
—

 
164

 
28

 
(115
)
 
77


1 Amounts represent offsetting cash collateral received from and paid to the same derivative counterparties and the impact of netting derivative assets and derivative liabilities when a legally enforceable master netting agreement or similar agreement exists.
2 See Note 11, "Derivative Financial Instruments," for further disaggregation of derivative assets and liabilities.
3 Includes $266 million of FHLB of Atlanta stock, $402 million of Federal Reserve Bank stock, $107 million in mutual fund investments, and $1 million of other.
4 These amounts include IRLCs and derivative financial instruments entered into by the Mortgage Banking segment to hedge its interest rate risk.
5 These amounts include the derivative associated with the Company's sale of Visa shares during the year ended December 31, 2009, certain CDS, and contingent consideration obligations related to acquisitions.







 
December 31, 2012
 
Fair Value Measurements
 
 
 
 
(Dollars in millions)
Level 1
 
Level 2
 
Level 3
 
Netting
 Adjustments 1
 
Assets/Liabilities
at Fair Value
Assets
 
 
 
 
 
 
 
 
 
Trading assets:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities

$111

 

$—

 

$—

 

$—

 

$111

Federal agency securities
—

 
462

 
—

 
—

 
462

U.S. states and political subdivisions
—

 
34

 
—

 
—

 
34

MBS - agency
—

 
432

 
—

 
—

 
432

CDO/CLO securities
—

 
3

 
52

 
—

 
55

ABS
—

 
31

 
5

 
—

 
36

Corporate and other debt securities
—

 
566

 
1

 
—

 
567

CP
—

 
28

 
—

 
—

 
28

Equity securities
100

 
—

 
—

 
—

 
100

Derivative contracts 2
483

 
7,885

 
—

 
(6,463
)
 
1,905

Trading loans
—

 
2,319

 
—

 
—

 
2,319

Total trading assets
694

 
11,760

 
58

 
(6,463
)
 
6,049

Securities AFS:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
222

 
—

 
—

 
—

 
222

Federal agency securities
—

 
2,069

 
—

 
—

 
2,069

U.S. states and political subdivisions
—

 
274

 
46

 
—

 
320

MBS - agency
—

 
18,169

 
—

 
—

 
18,169

MBS - private
—

 
—

 
209

 
—

 
209

ABS
—

 
195

 
21

 
—

 
216

Corporate and other debt securities
—

 
41

 
5

 
—

 
46

   Other equity securities 3
69

 
—

 
633

 
—

 
702

Total securities AFS
291

 
20,748

 
914

 
—

 
21,953

LHFS:
 
 
 
 
 
 
 
 
 
Residential loans
—

 
2,916

 
8

 
—

 
2,924

Corporate and other loans
—

 
319

 
—

 
—

 
319

Total LHFS
—

 
3,235

 
8

 
—

 
3,243

LHFI
—

 
—

 
379

 
—

 
379

MSRs
—

 
—

 
899

 
—

 
899

Other assets 2,4
2

 
154

 
132

 
(110
)
 
178

Liabilities
 
 
 
 
 
 
 
 
 
Trading liabilities:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
582

 
—

 
—

 
—

 
582

Corporate and other debt securities
—

 
173

 
—

 
—

 
173

Equity securities
9

 
—

 
—

 
—

 
9

Derivative contracts 2
300

 
7,158

 
—

 
(7,061
)
 
397

Total trading liabilities
891

 
7,331

 
—

 
(7,061
)
 
1,161

Brokered time deposits
—

 
832

 
—

 
—

 
832

Long-term debt
—

 
1,622

 
—

 
—

 
1,622

Other liabilities 2,4,5
—

 
56

 
31

 
(41
)
 
46

1 Amounts represent offsetting cash collateral received from and paid to the same derivative counterparties and the impact of netting derivative assets and derivative liabilities when a legally enforceable master netting agreement or similar agreement exists.
2 See Note 11, "Derivative Financial Instruments," for further disaggregation of derivative assets and liabilities.
3 Includes $229 million of FHLB of Atlanta stock, $402 million of Federal Reserve Bank stock, $69 million in mutual fund investments, and $2 million of other.
4 These amounts include IRLCs and derivative financial instruments entered into by the Mortgage Banking segment to hedge its interest rate risk.
5 These amounts include the derivative associated with the Company's sale of Visa shares during the year ended December 31, 2009, certain CDS, and contingent consideration obligations related to acquisitions.




The
Fair Value Option Elected, Difference Between the Aggregate Fair Value and the Aggregate Unpaid Principal Balance 
(Dollars in millions)
Aggregate Fair Value at
September 30, 2013
 
Aggregate Unpaid Principal
Balance under FVO at
September 30, 2013
 
Fair Value
Over/(Under)
Unpaid Principal
Assets:
 
 
 
 
 
Trading loans

$2,183

 

$2,159

 

$24

LHFS
2,229

 
2,183

 
46

Past due loans of 90 days or more
1

 
1

 
—

Nonaccrual loans
10

 
11

 
(1
)
LHFI
309

 
328

 
(19
)
Past due loans of 90 days or more
1

 
1

 
—

Nonaccrual loans
6

 
10

 
(4
)
Liabilities:
 
 
 
 
 
Brokered time deposits
784

 
779

 
5

Long-term debt
1,593

 
1,460

 
133

(Dollars in millions)
Aggregate Fair Value at
December 31, 2012
 

Aggregate Unpaid Principal
Balance under FVO at
December 31, 2012
 

Fair Value
Over/(Under)
Unpaid Principal
Assets:
 
 
 
 
 
Trading loans

$2,319

 

$2,285

 

$34

LHFS
3,237

 
3,109

 
128

Past due loans of 90 days or more
3

 
5

 
(2
)
Nonaccrual loans
3

 
12

 
(9
)
LHFI
360

 
371

 
(11
)
Past due loans of 90 days or more
1

 
3

 
(2
)
Nonaccrual loans
18

 
28

 
(10
)
Liabilities:
 
 
 
 
 
Brokered time deposits
832

 
825

 
7

Long-term debt
1,622

 
1,462

 
160


Change in Fair Value of Financial Instruments for which the FVO has been Elected 
 
Fair Value Gain/(Loss) for the Three Months Ended
September 30, 2013, for Items Measured at Fair Value Pursuant to Election of the FVO
 
Fair Value Gain/(Loss) for the Nine Months Ended
September 30, 2013, for Items Measured at Fair Value
Pursuant to Election of the FVO
(Dollars in millions)
Trading Income
 
Mortgage
Production
Related
(Loss)/
  Income 1
 
Mortgage
Servicing
Related
Income
 
Total Changes
in Fair Values  
Included in
Current Period
  Earnings 2
 
Trading
Income
 
Mortgage
Production
Related
(Loss)/
Income 1
 
Mortgage
Servicing
Related
Income
 
Total Changes
in Fair Values  
Included in
Current Period
  Earnings 2
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading loans

$3

 

$—

 

$—

 

$3

 

$8

 

$—

 

$—

 

$8

LHFS
1

 
4

 
—

 
5

 
2

 
(103
)
 
—

 
(101
)
LHFI
—

 
5

 
—

 
5

 
—

 
(5
)
 
—

 
(5
)
MSRs
—

 
1

 
(56
)
 
(55
)
 
—

 
3

 
42

 
45

 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brokered time deposits
2

 
—

 
—

 
2

 
6

 
—

 
—

 
6

Long-term debt
—

 
—

 
—

 
—

 
27

 
—

 
—

 
27

1 Income related to LHFS does not include income from IRLCs. For the three and nine months ended September 30, 2013, income related to MSRs includes $1 million and $3 million, respectively, of MSRs recognized upon the sale of loans reported at LOCOM.
2 Changes in fair value for the three and nine months ended September 30, 2013 exclude accrued interest for the periods then ended. Interest income or interest expense on trading loans, LHFS, LHFI, brokered time deposits, and long-term debt that have been elected to be carried at fair value are recognized in interest income or interest expense in the Consolidated Statements of Income.



 
Fair Value Gain/(Loss) for the Three Months Ended
September 30, 2012, for Items Measured at Fair Value
Pursuant to Election of the FVO
 
Fair Value Gain/(Loss) for the Nine Months Ended
September 30, 2012, for Items Measured at Fair Value
Pursuant to Election of the FVO
(Dollars in millions)
Trading Income
 
Mortgage
Production
Related
(Loss)/
  Income 1
 
Mortgage
Servicing
Related
Income
 
Total Changes
in Fair Values  
Included in
Current
Period
  Earnings 2
 
Trading
Income
 
Mortgage
Production
Related
(Loss)/
Income 1
 
Mortgage
Servicing
Related
Income
 
Total Changes
in Fair Values  
Included in
Current
Period
  Earnings 2
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading loans

$9

 

$—

 

$—

 

$9

 

$25

 

$—

 

$—

 

$25

LHFS
5

 
67

 
—

 
72

 
10

 
80

 
—

 
90

LHFI
—

 
5

 
—

 
5

 
1

 
7

 
—

 
8

MSRs
—

 
1

 
(116
)
 
(115
)
 
—

 
31

 
(330
)
 
(299
)
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brokered time deposits
(3
)
 
—

 
—

 
(3
)
 
4

 
—

 
—

 
4

Long-term debt
(41
)
 
—

 
—

 
(41
)
 
(55
)
 
—

 
—

 
(55
)
1 Income related to LHFS does not include income from IRLCs. For the three and nine months ended September 30, 2012, income related to MSRs includes $1 million and $31 million, respectively, of MSRs recognized upon the sale of loans reported at LOCOM.
2 Changes in fair value for the three and nine months ended September 30, 2012 exclude accrued interest for the periods then ended. Interest income or interest expense on trading loans, LHFS, LHFI, brokered time deposits, and long-term debt that have been elected to be carried at fair value are recognized in interest income or interest expense in the Consolidated Statements of Income.
Fair Value Level 3 Significant Unobservable Input Assumptions [Table Text Block] 
 
 Level 3 Significant Unobservable Input Assumptions
(Dollars in millions)
Fair value
September 30, 2013 
 
Valuation Technique
 
Unobservable Input 1
 
Range
(weighted average)
Trading assets:
 
 
 
 
 
 
 
CDO/CLO securities

$63

 
Matrix pricing/Discounted cash flow
 
Indicative pricing based on overcollateralization ratio
 
$42-$54 ($48)
 
Estimated collateral losses
 
32-38% (34%)
 
Discount margin
 
5-7% (6%)
ABS
6

 
Matrix pricing
 
Indicative pricing
 
$55 ($55)
Securities AFS:
 
 
 
 
 
 
 
U.S. states and political subdivisions
34

 
Matrix pricing
 
Indicative pricing
 
$80-$108 ($94)
MBS - private
166

 
Third party pricing
 
N/A
 

ABS
21

 
Third party pricing
 
N/A
 

Corporate and other debt securities
5

 
Cost
 
N/A
 

Other equity securities
669

 
Cost
 
N/A
 

Residential LHFS
4

 
Monte Carlo/Discounted cash flow
 
Option adjusted spread
 
250-675 bps (360 bps)
 
Conditional prepayment rate
 
2-11 CPR (6 CPR)
 
Conditional default rate
 
0-4 CDR (1 CDR)
LHFI
308

 
Monte Carlo/Discounted cash flow
 
Option adjusted spread
 
0-675 bps (301 bps)
 
Conditional prepayment rate
 
1-35 CPR (12 CPR)
 
Conditional default rate
 
0-8 CDR (3 CDR)
8

 
Collateral based pricing
 
Appraised value
 
NM 2
MSRs
1,248

 
Discounted cash flow
 
Conditional prepayment rate
 
5-26 CPR (9 CPR)
 
Discount rate
 
8-28% (12%)
Other assets/(liabilities), net 3
46

 
Internal model
 
Pull through rate
 
1-99% (73%)
 
MSR value
 
11-233 bps (104 bps)
(23
)
 
Internal model
 
Loan production volume
 
0-150% (92%)
(3
)
 
Internal model
 
Revenue run rate
 
NM 2
1 For certain assets and liabilities that the Company utilizes third party pricing, the unobservable inputs and their ranges are not reasonably available to the Company, and therefore, have been noted as "N/A."
2 Not meaningful.
3 Input assumptions relate to the Company's IRLCs and the contingent consideration obligations related to acquisitions. Excludes $1 million of Other Liabilities. See Note 12, "Reinsurance Arrangements and Guarantees," for additional information.

 
 Level 3 Significant Unobservable Input Assumptions
(Dollars in millions)
Fair value
December 31, 2012 
 
Valuation Technique
 
Unobservable Input 1
 
Range
(weighted average)
Trading assets:
 
 
 
 
 
 
 
CDO/CLO securities

$52

 
Matrix pricing
 
Indicative pricing based on overcollateralization ratio
 
$33-$45 ($40)
 
Estimated collateral losses
 
34-45% (39%)
ABS
5

 
Matrix pricing
 
Indicative pricing
 
$45 ($45)
Corporate and other debt securities
1

 
Third party pricing
 
N/A
 
 
Securities AFS:
 
 
 
 
 
 
 
U.S. states and political subdivisions
46

 
Matrix pricing
 
Indicative pricing
 
$72-$115 ($92)
MBS - private
209

 
Third party pricing
 
N/A
 
 
ABS
21

 
Third party pricing
 
N/A
 
 
Corporate and other debt securities
5

 
Cost
 
N/A
 
 
Other equity securities
633

 
Cost
 
N/A
 
 
Residential LHFS
8

 
Monte Carlo/Discounted cash flow
 
Option adjusted spread
 
0-622 bps (251 bps)
 
Conditional prepayment rate
 
5-30 CPR (15 CPR)
 
Conditional default rate
 
0-20 CDR (3.5 CDR)
LHFI
369

 
Monte Carlo/Discounted cash flow
 
Option adjusted spread
 
0-622 bps (251 bps)
 
Conditional prepayment rate
 
5-30 CPR (15 CPR)
 
Conditional default rate
 
0-20 CDR (3.5 CDR)
10

 
Collateral based pricing
 
Appraised value
 
NM 2
MSRs
899

 
Discounted cash flow
 
Conditional prepayment rate
 
6-31 CPR (16 CPR)
 
Discount rate
 
9-28% (11%)
Other assets/(liabilities), net 3
132

 
Internal model
 
Pull through rate
 
9-98% (71%)
 
MSR value
 
6-244 bps (104 bps)
(24
)
 
Internal model
 
Loan production volume
 
0-150% (92%)
(7
)
 
Internal model
 
Revenue run rate
 
NM 2
1 For certain assets and liabilities that the Company utilizes third party pricing, the unobservable inputs and their ranges are not reasonably available to the Company, and therefore, have been noted as "N/A."
2 Not meaningful.
3 Input assumptions relate to the Company's IRLCs and the contingent consideration obligations related to acquisitions. See Note 12, "Reinsurance Arrangements and Guarantees," for additional information.

Reconciliation of the Beginning and Ending Balances for Fair Valued Assets and Liabilities Measured on a Recurring Basis Using Significant Unobservable Inputs 
 
Fair Value Measurements
Using Significant Unobservable Inputs
 
(Dollars in millions)
Beginning
balance
July 1,
2013
 
Included
in
earnings
 
OCI
 
Purchases
 
Sales
 
Settlements
 
Transfers
to/from
other
balance sheet
line items
 
Transfers
into
Level 3
 
Transfers
out of
Level 3
 
Fair value
September 30,
2013
 
Included in earnings (held at September 30, 2013) 1
 
Trading assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CDO/CLO securities

$63

 

$—

 

$—

 

$—

 

$—

 

$—

 

$—

 

$—

 

$—

 

$63

 

$—

 
ABS
6

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
6

 
—

  
Total trading assets
69

 
—

 
—

  
—

 
—

 
—

 
—

 
—

 
—

 
69

 
—

 
Securities AFS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. states and political subdivisions
37

 
—

 
—

 
—

 
—

 
(3
)
 
—

 
—

 
—

 
34

 
—

  
MBS - private
181

 
—

 
(2
)
 
—

 
—

 
(13
)
 
—

 
—

 
—

 
166

 
—

  
ABS
22

 
—

 
—

 
—

 
—

 
(1
)
 
—

 
—

 
—

 
21

 
—

  
Corporate and other debt securities
2

 
—

 
—

 
4

 
—

 
(1
)
 
—

 
—

 
—

 
5

 
—

  
Other equity securities
737

 
—

 
—

 
—

 
—

 
(68
)
 
—

 
—

 
—

 
669

 
—

  
Total securities AFS
979

 
—

 
(2
)
6 
4

 
—

 
(86
)
 
—

 
—

 
—

 
895

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential LHFS
8

 
—

 
—

 
—

 
(4
)
 
—

 
(5
)
 
6

 
(1
)
 
4

 
—

 
LHFI
339

 
4

4 
—

 
—

 
—

 
(15
)
 
(12
)
 
—

 
—

 
316

 
2

4 
Other assets/(liabilities), net
(81
)
 
46

5 
—

 
—

 
—

 
4

 
50

 
—

 
—

 
19

 
—

  

 
Fair Value Measurements
Using Significant Unobservable Inputs
 
(Dollars in millions)
Beginning
balance
January 1,
2013
 
Included
in
earnings
 
OCI
 
Purchases
 
Sales
 
Settlements
 
Transfers
to/from
other
balance sheet
line items
 
Transfers
into
Level 3
 
Transfers
out of
Level 3
 
Fair value
September 30,
2013
 
Included in earnings (held at September 30, 2013) 1
 
Trading assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CDO/CLO securities

$52

 

$11

 

$—

  

$—

 

$—

 

$—

 

$—

 

$—

 

$—

 

$63

 

$11

 
ABS
5

 
1

  
—

  
—

 
—

 
—

 
—

 
—

 
—

 
6

 
1

  
Corporate and other debt securities
1

 
—

  
—

  
—

 
—

 
(1
)
 
—

 
—

 
—

 
—

 
—

 
Total trading assets
58

 
12

2 
—

  
—

 
—

 
(1
)
 
—

 
—

 
—

 
69

 
12

2 
Securities AFS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. states and political subdivisions
46

 
—

  
2

  
—

 
(7
)
 
(7
)
 
—

 
—

 
—

 
34

 
—

  
MBS - private
209

 
—

  
(5
)
  
—

 
—

 
(38
)
 
—

 
—

 
—

 
166

 
—

  
ABS
21

 
(1
)
  
3

  
—

 
—

 
(2
)
 
—

 
—

 
—

 
21

 
(1
)
  
Corporate and other debt securities
5

 
—

  
—

  
4

 
—

 
(4
)
 
—

 
—

 
—

 
5

 
—

  
Other equity securities
633

 
—

  
—

  
110

 
—

 
(74
)
 
—

 
—

 
—

 
669

 
—

  
Total securities AFS
914

 
(1
)
3 
—

 
114

 
(7
)
 
(125
)
 
—

 
—

 
—

 
895

 
(1
)
3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential LHFS
8

 
—

 
—

  
—

 
(20
)
 
—

 
(8
)
 
28

 
(4
)
 
4

 
—

 
LHFI
379

 
(2
)
4 
—

  
—

 
—

 
(47
)
 
(14
)
 
—

 
—

 
316

 
(8
)
4 
Other assets/(liabilities), net
101

 
72

5 
—

  
—

 
—

 
5

 
(159
)
 
—

 
—

 
19

 
1

5 
1 Change in unrealized gains/(losses) included in earnings during the period related to financial assets still held at September 30, 2013.
2 Amounts included in earnings are recognized in trading income.
3 Amounts included in earnings are recognized in net securities gains.
4 Amounts are generally included in mortgage production related (loss)/income; however, the mark on certain fair value loans is included in trading income.
5 Amounts included in earnings are net of issuances, fair value changes, and expirations and are recognized in mortgage production related (loss)/income.
6 Amount recognized in OCI is recognized in change in net unrealized gains on securities, net of tax.



 
Fair Value Measurements
Using Significant Unobservable Inputs
 
(Dollars in millions)
Beginning
balance
July 1,
2012
 
Included
in
earnings
 
OCI
 
Sales
 
Settlements
 
Transfers
to/from other
balance sheet
line items
 
Transfers
into
Level 3
 
Fair value
September 30,
2012
 
Included in earnings (held at September
  30, 2012) 1
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CDO/CLO securities

$43

 

$4

 

$—

 

$—

 

$—

 

$—

 

$—

 

$47

 

$4

 
ABS
5

 
—

 
—

 
—

 
—

 
—

 
—

 
5

 
—

  
Corporate and other debt securities
1

 
—

 
—

 
—

 
—

 
—

 
—

 
1

 
—

 
Total trading assets
49

 
4

2 
—

 
—

 
—

 
—

 
—

 
53

 
4

2 
Securities AFS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. states and political subdivisions
55

 
—

 
1

 
—

 
(5
)
 
—

 
—

 
51

 
—

  
MBS - private
208

 
(3
)
 
21

 
—

 
(9
)
 
—

 
—

 
217

 
(3
)
  
ABS
17

 
—

 
1

 
—

 
—

 
—

 
—

 
18

 
—

  
Corporate and other debt securities
5

 
—

 
—

 
—

 
—

 
—

 
—

 
5

 
—

  
Other equity securities
857

 
—

 
—

 
—

 
(22
)
 
—

 
—

 
835

 
—

  
Total securities AFS
1,142

 
(3
)
3 
23

6 
—

 
(36
)
 
—

 
—

 
1,126

 
(3
)
3 
Residential LHFS
2

 
—

 
—

 
(5
)
 
—

 
2

 
5

 
4

 
—

 
LHFI
406

 
3

4 
—

 
—

 
(14
)
 
(6
)
 
1

 
390

 
—

 
Other assets/(liabilities), net
101

 
331

5 
—

 
—

 
3

 
(269
)
 
—

 
166

 
—

 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts
(349
)
 
(305
)
3 
355

7 
—

 
299

 
—

 
—

 
—

 
—

 

 
Fair Value Measurements
Using Significant Unobservable Inputs
 
(Dollars in millions)
Beginning
balance
January 1,
2012
 
Included
in
earnings
 
OCI
 
Purchases
 
Sales
 
Settlements
 
Transfers
to/from other
balance sheet
line items
 
Transfers
into
Level 3
 
Transfers
out of
Level 3
 
Fair value
September 30,
2012
 
Included in earnings (held at September
 30, 2012) 1
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CDO/CLO securities

$43

 

$4

 

$—

 

$—

 

$—

 

$—

 

$—

 

$—

 

$—

 

$47

 

$4

 
ABS
5

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
5

 
—

  
Corporate and other debt securities
1

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
1

 
—

  
Total trading assets
49

 
4

2 
—

 
—

  
—

 
—

 
—

 
—

 
—

 
53

 
4

2 
Securities AFS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. states and political subdivisions
58

 
—

 
—

 
—

 
—

 
(7
)
 
—

 
—

 
—

 
51

 
—

  
MBS - private
221

 
(7
)
 
35

 
—

 
—

 
(32
)
 
—

 
—

 
—

 
217

 
(7
)
  
ABS
16

 
—

 
4

 
—

 
—

 
(2
)
 
—

 
—

 
—

 
18

 
—

  
Corporate and other debt securities
5

 
—

 
—

 
2

 
—

 
(2
)
 
—

 
—

 
—

 
5

 
—

  
Other equity securities
741

 
—

 
—

 
163

 
—

 
(69
)
 
—

 
—

 
—

 
835

 
—

  
Total securities AFS
1,041

 
(7
)
3 
39

6 
165

  
—

 
(112
)
 
—

 
—

 
—

 
1,126

 
(7
)
3 
Residential LHFS
1

 
—

 
—

 
—

 
(6
)
 
—

 
4

 
10

 
(5
)
 
4

 
—

 
LHFI
433

 
4

4 
—

 
—

 
—

 
(40
)
 
(10
)
 
4

 
(1
)
 
390

 
1

4 
Other assets/(liabilities), net
62

 
769

5 
—

 
(31
)
 
—

 
25

 
(659
)
 
—

 
—

 
166

 
—

 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative contracts
(189
)
 
(304
)
3 
194

7 
—

 
—

 
299

 
—

 
—

 
—

 
—

 
—

 
1 Change in unrealized gains/(losses) included in earnings for the period related to financial assets still held at September 30, 2012.
2 Amounts included in earnings are recognized in trading income.
3 Amounts included in earnings are generally recognized in net securities gains; however, any related hedge ineffectiveness is recognized in trading income.
4 Amounts are generally included in mortgage production related (loss)/income; however, the mark on certain fair value loans is included in trading income.
5 Amounts included in earnings are net of issuances, fair value changes, and expirations and are recognized in mortgage production related (loss)/income.
6 Amounts recognized in OCI are recognized in change in net unrealized gains on securities, net of tax.
Change in Carrying Value of Assets Measured at Fair Value on a Non-Recurring Basis 
(Dollars in millions)
September 30, 2013
 
Quoted Prices in
Active Markets
for Identical
Assets/Liabilities
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Gains/(Losses) for
the Three
Months Ended
September 30, 2013
 
Gains/(Losses) for
the Nine
Months Ended
September 30, 2013
LHFS

$33

 

$—

 

$33

 

$—

 

($3
)
 

($10
)
LHFI
71

 
—

 
—

 
71

 
—

 
—

OREO
56

 
—

 
3

 
53

 
(9
)
 
(16
)
Affordable Housing
69

 
—

 
—

 
69

 
9

 
9

Other Assets
224

 
—

 
224

 
—

 
(38
)
 
(39
)
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in millions)
December 31, 2012
 
Quoted Prices in
Active Markets
for Identical
Assets/Liabilities
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Losses for the
Year Ended
December 31, 2012
 

LHFS

$65

 

$—

 

$65

 

$—

 

$—

 
 
LHFI
308

 
—

 
—

 
308

 
(79
)
 
 
OREO
264

 
—

 
205

 
59

 
(48
)
 
 
Affordable Housing
82

 
—

 
—

 
82

 
(96
)
 
 
Other Assets
65

 
—

 
42

 
23

 
(13
)
 
 

Carrying Amounts and Fair Values of the Company's Financial Instruments 
The carrying amounts and fair values of the Company’s financial instruments are as follows:
 
 
September 30, 2013
 
Fair Value Measurement Using
 
(Dollars in millions)
Carrying
Amount
 
Fair
Value
 
Quoted Prices in
Active Markets
for Identical
Assets/Liabilities
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Financial assets:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents

$4,286

 

$4,286

 

$4,286

 

$—

 

$—

(a) 
Trading assets
5,731

 
5,731

 
1,008

 
4,654

 
69

(b) 
Securities AFS
22,626

 
22,626

 
878

 
20,853

 
895

(b) 
LHFS
2,462

 
2,462

 
—

 
2,458

 
4

(c) 
LHFI, net
122,269

 
118,165

 
—

 
3,046

 
115,119

(d)
Financial liabilities:
 
 
 
 
 
 
 
 
 
 
Consumer and commercial deposits
126,861

 
126,930

 
—

 
126,930

 
—

(e) 
Brokered time deposits
2,022

 
2,022

 
—

 
2,022

 
—

(f) 
Short-term borrowings
6,987

 
6,987

 
—

 
6,987

 
—

(f) 
Long-term debt
9,985

 
9,970

 
—

 
9,415

 
555

(f) 
Trading liabilities
1,264

 
1,264

 
1,010

 
254

 
—

(b) 

 
December 31, 2012
 
Fair Value Measurement Using
 
(Dollars in millions)
Carrying
Amount
 
Fair
Value
 
Quoted Prices in
Active Markets
for Identical
Assets/Liabilities
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Financial assets:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents

$8,257

 

$8,257

 

$8,257

 

$—

 

$—

(a) 
Trading assets
6,049

 
6,049

 
394

 
5,597

 
58

(b) 
Securities AFS
21,953

 
21,953

 
291

 
20,748

 
914

(b) 
LHFS
3,399

 
3,399

 
—

 
3,375

 
24

(c) 
LHFI, net
119,296

 
115,690

 
—

 
4,041

 
111,649

(d)
Financial liabilities:
 
 
 
 
 
 
 
 
 
 
Consumer and commercial deposits
130,180

 
130,449

 
—

 
130,449

 
—

(e) 
Brokered time deposits
2,136

 
2,164

 
—

 
2,164

 
—

(f) 
Short-term borrowings
5,494

 
5,494

 
—

 
5,494

 
—

(f) 
Long-term debt
9,357

 
9,413

 
—

 
8,829

 
584

(f) 
Trading liabilities
1,161

 
1,161

 
591

 
570

 
—

(b) 

The following methods and assumptions were used by the Company in estimating the fair value of financial instruments:
(a)
Cash and cash equivalents are valued at their carrying amounts reported in the balance sheet, which are reasonable estimates of fair value due to the relatively short period to maturity of the instruments.
(b)
Securities AFS, trading assets, and trading liabilities that are classified as level 1 are valued based on quoted market prices. For those instruments classified as level 2 or 3, refer to the respective valuation discussions within this footnote.
(c)
LHFS are generally valued based on observable current market prices or, if quoted market prices are not available, on quoted market prices of similar instruments. Refer to the LHFS section within this footnote for further discussion of the LHFS carried at fair value. In instances for which significant valuation assumptions are not readily observable in the market, instruments are valued based on the best available data to approximate fair value. This data may be internally-developed and considers risk premiums that a market participant would require under then-current market conditions.
(d)
LHFI fair values are based on a hypothetical exit price, which does not represent the estimated intrinsic value of the loan if held for investment. The assumptions used are expected to approximate those that a market participant purchasing the loans would use to value the loans, including a market risk premium and liquidity discount. Estimating the fair value of the loan portfolio when loan sales and trading markets are illiquid, or for certain loan types, nonexistent, requires significant judgment. Therefore, the estimated fair value can vary significantly depending on a market participant’s ultimate considerations and assumptions. The final value yields a market participant’s expected return on investment that is indicative of the current market conditions, but it does not take into consideration the Company’s estimated value from continuing to hold these loans or its lack of willingness to transact at these estimated values.
The Company generally estimated fair value for LHFI based on estimated future cash flows discounted, initially, at current origination rates for loans with similar terms and credit quality, which derived an estimated value of 100% and 101% on the loan portfolio’s net carrying value at September 30, 2013 and December 31, 2012, respectively. The value derived from origination rates likely does not represent an exit price; therefore, an incremental market risk and liquidity discount was subtracted from the initial value at September 30, 2013 and December 31, 2012, respectively. The discounted value is a function of a market participant’s required yield in the current environment and is not a reflection of the expected cumulative losses on the loans. Loan prepayments are used to adjust future cash flows based on historical experience and prepayment model forecasts. The value of related accrued interest on loans approximates fair value; however, it is not included in the carrying amount or fair value of loans. The value of long-term customer relationships is not permitted under current U.S. GAAP to be included in the estimated fair value.
(e)
Deposit liabilities with no defined maturity such as DDAs, NOW/money market accounts, and savings accounts have a fair value equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for CDs are estimated using a discounted cash flow measurement that applies current interest rates to a schedule of aggregated expected maturities. The assumptions used in the discounted cash flow analysis are expected to approximate those that market participants would use in valuing deposits. The value of long-term relationships with depositors is not taken into account in estimating fair values.
(f)
Fair values for foreign deposits, certain brokered time deposits, short-term borrowings, and certain long-term debt are based on quoted market prices for similar instruments or estimated using discounted cash flow analysis and the Company’s current incremental borrowing rates for similar types of instruments. For brokered time deposits and long-term debt that the Company carries at fair value, refer to the respective valuation sections within this footnote. For level 3 debt, the terms are unique in nature or there are otherwise no similar instruments than can be used to value the instrument without using significant unobservable assumptions. In this situation, we look at current borrowing rates along with the collateral levels that secure the debt in determining an appropriate fair value adjustment.
Business Segment Reporting (Tables)
Business Segment Reporting
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2013
(Dollars in millions)
Consumer
Banking and
Private Wealth
Management
 
Wholesale Banking
 
Mortgage Banking
 
Corporate Other
 
Reconciling
Items
 
Consolidated
Balance Sheets:
 
 
 
 
 
 
 
 
 
 
 
Average total assets

$45,532

 

$66,552

 

$33,025

 

$25,646

 

$1,083

 

$171,838

Average total liabilities
84,744

 
46,977

 
3,740

 
15,362

 
(12
)
 
150,811

Average total equity
—

 
—

 
—

 
—

 
21,027

 
21,027

 
 
 
 
 
 
 
 
 
 
 
 
Statements of Income/(loss):
 
 
 
 
 
 
 
 
 
 
 
Net interest income

$653

 

$401

 

$140

 

$74

 

($60
)
 

$1,208

FTE adjustment
—

 
31

 
—

 
1

 
—

 
32

Net interest income - FTE 1
653

 
432

 
140

 
75

 
(60
)
 
1,240

Provision for credit losses 2
79

 
21

 
45

 
—

 
(50
)
 
95

Net interest income after provision for credit losses
574

 
411

 
95

 
75

 
(10
)
 
1,145

Total noninterest income
379

 
294

 
(1
)
 
11

 
(3
)
 
680

Total noninterest expense
689

 
428

 
638

 
(9
)
 
(3
)
 
1,743

Income/(loss) before provision/(benefit) for income taxes
264

 
277

 
(544
)
 
95

 
(10
)
 
82

Provision/(benefit) for income taxes 3
97

 
81

 
(139
)
 
(166
)
 
13

 
(114
)
Net income/(loss) including income attributable to noncontrolling interest
167

 
196

 
(405
)
 
261

 
(23
)
 
196

Net income attributable to noncontrolling interest
—

 
2

 
—

 
5

 
—

 
7

Net income/(loss)

$167

 

$194

 

($405
)
 

$256

 

($23
)
 

$189


 
Three Months Ended September 30, 2012
(Dollars in millions)
Consumer
Banking and
Private Wealth
Management
 
Wholesale Banking
 
Mortgage Banking
 
Corporate Other
 
Reconciling
Items
 
Consolidated
Balance Sheets:
 
 
 
 
 
 
 
 
 
 
 
Average total assets

$47,053

 

$64,605

 

$35,372

 

$26,667

 

$1,585

 

$175,282

Average total liabilities
84,107

 
45,621

 
4,890

 
19,933

 
112

 
154,663

Average total equity
—

 
—

 
—

 
—

 
20,619

 
20,619

 
 
 
 
 
 
 
 
 
 
 
 
Statements of Income/(loss):
 
 
 
 
 
 
 
 
 
 
 
Net interest income

$691

 

$386

 

$129

 

$80

 

($15
)
 

$1,271

FTE adjustment
—

 
29

 
—

 
1

 
—

 
30

Net interest income - FTE 1
691

 
415

 
129

 
81

 
(15
)
 
1,301

Provision for credit losses 2
172

 
69

 
270

 
—

 
(61
)
 
450

Net interest income/(loss) after provision for credit losses
519

 
346

 
(141
)
 
81

 
46

 
851

Total noninterest income
356

 
354

 
(75
)
 
1,910

 
(3
)
 
2,542

Total noninterest expense
773

 
518

 
368

 
66

 
1

 
1,726

Income/(loss) before provision/(benefit) for income taxes
102

 
182

 
(584
)
 
1,925

 
42

 
1,667

Provision/(benefit) for income taxes 3
39

 
47

 
(200
)
 
675

 
20

 
581

Net income/(loss) including income attributable to noncontrolling interest
63

 
135

 
(384
)
 
1,250

 
22

 
1,086

Net income attributable to noncontrolling interest
—

 
7

 
—

 
3

 
(1
)
 
9

Net income/(loss)

$63

 

$128

 

($384
)
 

$1,247

 

$23

 

$1,077


1 Presented on a matched maturity funds transfer price basis for the segments.
2 Provision for credit losses represents net charge-offs for the segments.
3 Includes regular income tax provision/(benefit) and taxable-equivalent income adjustment reversal.

 
Nine Months Ended September 30, 2013
(Dollars in millions)
Consumer Banking and Private Wealth Management
 
Wholesale Banking
 
Mortgage Banking
 
Corporate Other
 
Reconciling
Items
 
Consolidated
Balance Sheets:
 
 
 
 
 
 
 
 
 
 
 
Average total assets

$45,156

 

$66,307

 

$32,973

 

$26,264

 

$1,361

 

$172,061

Average total liabilities
84,980

 
46,904

 
4,166

 
14,960

 
(87
)
 
150,923

Average total equity
—

 
—

 
—

 
—

 
21,138

 
21,138

 
 
 
 
 
 
 
 
 
 
 
 
Statements of Income/(loss):
 
 
 
 
 
 
 
 
 
 
 
Net interest income

$1,950

 

$1,190

 

$409

 

$231

 

($140
)
 

$3,640

FTE adjustment
—

 
90

 
—

 
2

 
1

 
93

Net interest income - FTE 1
1,950

 
1,280

 
409

 
233

 
(139
)
 
3,733

Provision for credit losses 2
286

 
67

 
197

 
—

 
(97
)
 
453

Net interest income after provision for credit losses
1,664

 
1,213

 
212

 
233

 
(42
)
 
3,280

Total noninterest income
1,107

 
934

 
328

 
41

 
(9
)
 
2,401

Total noninterest expense
2,082

 
1,224

 
1,247

 
(41
)
 
(9
)
 
4,503

Income/(loss) before provision/(benefit) for income taxes
689

 
923

 
(707
)
 
315

 
(42
)
 
1,178

Provision/(benefit) for income taxes 3
253

 
281

 
(206
)
 
(98
)
 
14

 
244

Net income/(loss) including income attributable to noncontrolling interest
436

 
642

 
(501
)
 
413

 
(56
)
 
934

Net income attributable to noncontrolling interest
—

 
7

 
—

 
9

 
—

 
16

Net income/(loss)

$436

 

$635

 

($501
)
 

$404

 

($56
)
 

$918



 
Nine Months Ended September 30, 2012
(Dollars in millions)
Consumer
Banking and
Private Wealth
Management
 
Wholesale Banking
 
Mortgage Banking
 
Corporate Other
 
Reconciling
Items
 
Consolidated
Balance Sheets:
 
 
 
 
 
 
 
 
 
 
 
Average total assets

$47,029

 

$63,831

 

$35,464

 

$28,932

 

$1,423

 

$176,679

Average total liabilities
84,749

 
46,538

 
4,357

 
20,764

 
(179
)
 
156,229

Average total equity
—

 
—

 
—

 
—

 
20,450

 
20,450

 
 
 
 
 
 
 
 
 
 
 
 
Statements of Income/(loss):
 
 
 
 
 
 
 
 
 
 
 
Net interest income

$2,057

 

$1,133

 

$387

 

$301

 

($22
)
 

$3,856

FTE adjustment
—

 
90

 
—

 
3

 
—

 
93

Net interest income - FTE 1
2,057

 
1,223

 
387

 
304

 
(22
)
 
3,949

Provision for credit losses 2
464

 
217

 
602

 
—

 
(216
)
 
1,067

Net interest income/(loss) after provision for credit losses
1,593

 
1,006

 
(215
)
 
304

 
194

 
2,882

Total noninterest income
1,115

 
1,020

 
261

 
1,970

 
(8
)
 
4,358

Total noninterest expense
2,285

 
1,429

 
1,045

 
61

 
(7
)
 
4,813

Income/(loss) before provision/(benefit) for income taxes
423

 
597

 
(999
)
 
2,213

 
193

 
2,427

Provision/(benefit) for income taxes 3
155

 
159

 
(369
)
 
776

 
82

 
803

Net income/(loss) including income attributable to noncontrolling interest
268

 
438

 
(630
)
 
1,437

 
111

 
1,624

Net income attributable to noncontrolling interest
—

 
14

 
—

 
7

 
1

 
22

Net income/(loss)

$268

 

$424

 

($630
)
 

$1,430

 

$110

 

$1,602

1 Presented on a matched maturity funds transfer price basis for the segments.
2 Provision for credit losses represents net charge-offs for the segments.
3 Includes regular income tax provision/(benefit) and taxable-equivalent income adjustment reversal.
Accumulated Other Comprehensive Income (Tables)
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] 
 
Three Months Ended September 30
 
2013
 
2012
(Dollars in millions)
Pre-tax Amount
 
Income Tax (Expense) Benefit
 
After-tax Amount
 
Pre-tax Amount
 
Income Tax (Expense) Benefit
 
After-tax Amount
AOCI, beginning balance

($432
)
 

$149

 

($283
)
 

$2,733

 

($990
)
 

$1,743

Unrealized (losses)/gains on AFS securities:
 
 
 
 
 
 
 
 
 
 
 
Unrealized net losses
(18
)
 
7

 
(11
)
 
(302
)
 
105

 
(197
)
Less: reclassification adjustment for realized gains 1
—

 
—

 
—

 
(1,941
)
 
690

 
(1,251
)
Unrealized gains on cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
Unrealized net gains
60

 
(22
)
 
38

 
433

 
(154
)
 
279

Less: reclassification adjustment for realized gains
(101
)
 
37

 
(64
)
 
(118
)
 
43

 
(75
)
Change related to employee benefit plans
7

 
(3
)
 
4

 
8

 
(3
)
 
5

AOCI, ending balance

($484
)
 

$168

 

($316
)
 

$813

 

($309
)
 

$504



 
Nine Months Ended September 30
 
2013
 
2012
(Dollars in millions)
Pre-tax Amount
 
Income Tax (Expense) Benefit
 
After-tax Amount
 
Pre-tax Amount
 
Income Tax (Expense) Benefit
 
After-tax Amount
AOCI, beginning balance

$506

 

($197
)
 

$309

 

$2,744

 

($995
)
 

$1,749

Unrealized (losses)/gains on AFS securities:
 
 
 
 
 
 
 
 
 
 
 
Unrealized net (losses)/gains
(736
)
 
271

 
(465
)
 
29

 
(13
)
 
16

Less: reclassification adjustment for realized gains 1
(2
)
 
1

 
(1
)
 
(1,973
)
 
701

 
(1,272
)
Unrealized gains on cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
Unrealized net gains
15

 
(5
)
 
10

 
439

 
(159
)
 
280

Less: reclassification adjustment for realized gains
(315
)
 
116

 
(199
)
 
(390
)
 
144

 
(246
)
Change related to employee benefit plans
48

 
(18
)
 
30

 
(36
)
 
13

 
(23
)
AOCI, ending balance

($484
)
 

$168

 

($316
)
 

$813

 

($309
)
 

$504


1 Excludes $305 million of losses related to derivatives associated with the Coke Agreements termination that was recorded in securities gains on the Consolidated Statements of Income.
schedule of reclassifications from AOCI [Table Text Block] 
 
 
 
 
 
(Dollars in millions)
 
Three Months Ended September 30
 
Nine Months Ended September 30
 
Affected line item in the Consolidated Statements of Income
Details about AOCI components
 
2013
 
2012
 
2013
 
2012
 
Realized gains on AFS securities:
 
 
 
 
 
 
 
 
 
 
 
 

$—

 

($1,941
)
 

($2
)
 

($1,973
)
 
Net securities gains
 
 
—

 
690

 
1

 
701

 
Provision for income taxes
 
 

$—

 

($1,251
)
 

($1
)
 

($1,272
)
 

Gains on cash flow hedges:
 
 
 
 
 
 
 
 
 
 

 

($101
)
 

($118
)
 

($315
)
 

($390
)
 
Interest and fees on loans
 
 
37

 
43

 
116

 
144

 
Provision for income taxes
 
 

($64
)
 

($75
)
 

($199
)
 

($246
)
 

Change related to employee benefit plans:
 
 
 
 
 
 
 
 
 
 
Amortization of actuarial losses
 

$6

 

$9

 

$19

 

$21

 
Employee benefits
 
 
1

 
(1
)
 
29

 
(57
)
 
Other assets/other liabilities 1
 
 
7

 
8

 
48

 
(36
)
 

 
 
(3
)
 
(3
)
 
(18
)
 
13

 
Provision for income taxes
 
 

$4

 

$5

 

$30

 

($23
)
 

1 This AOCI component is recognized as an adjustment to the funded status of employee benefit plans in the Company's Consolidated Balance Sheets. (For additional information, see Note 15, "Employee Benefit Plans," to the Consolidated Financial Statements in the Company's 2012 Annual Report on Form 10−K).
Federal Funds Sold and Securities Borrowed or Purchased Under Agreements to Resell (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Assets Sold under Agreements to Repurchase [Line Items]
 
 
Federal Funds Sold
$ 97 
$ 29 
Securities Borrowed
241 
155 
Securities Purchased under Agreements to Resell
884 
917 
Federal Funds Sold and Securities Purchased under Agreements to Resell
$ 1,222 
$ 1,101 
Federal Funds Sold and Securities Borrowed or Purchased Under Agreements to Resell - Additional Information (Details) (USD $)
Sep. 30, 2013
Dec. 31, 2012
Assets Sold under Agreements to Repurchase [Line Items]
 
 
Collateral Requirements Minimum Percentage Collateral To Fair Value Of Securities Purchased Under Repurchase Agreements
95.00% 
95.00% 
Collateral Requirements Maximum Percentage Collateral To Fair Value Of Securities Purchased Under Repurchase Agreements
110.00% 
110.00% 
Fair Value of Securities Received as Collateral that Can be Resold or Repledged
$ 1,100,000,000 
$ 1,100,000,000 
Fair Value of Securities Received as Collateral that Have Been Resold or Repledged
263,000,000 
246,000,000 
Trading Securities Pledged as Collateral
764,000,000 
727,000,000 
Amount of Repurchase Agreements Secured by Trading Assets
$ 756,000,000 
$ 703,000,000 
Federal Funds Sold and Securities Borrowed or Purchased Under Agreements to Resell Netting of financial instruments - repurchase agreements (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Assets Sold under Agreements to Repurchase [Line Items]
 
 
Carrying Value of Securities Purchased under Agreements to Resell and Deposits Paid for Securities Borrowed
$ 1,125 
$ 1,072 
Securities Purchased under Agreements to Resell, Amount Offset Against Collateral
0 
0 
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure
1,125 1 2
1,072 1 2
Held Financial Instruments, Not Separately Reported, Securities for Reverse Repurchase Agreements
1,117 
1,069 
Securities Borrowed or Purchased Under Agreements to Resell, Amount Not Offset Against Collateral
8 
3 
Carrying Value of Securities Sold under Repurchase Agreements and Deposits Received for Securities Loaned
1,574 
1,574 
Securities Sold Under Agreements to Repurchase, Amount Offset Against Collateral
0 
0 
Securities Sold under Agreements to Repurchase
1,574 1
1,574 1
Pledged Financial Instruments, Not Separately Reported, Securities for Repurchase Agreements
1,574 
1,574 
Securities Sold Under Agreements to Repurchase, Amount Not Offset Against Collateral
$ 0 
$ 0 
Federal Funds Sold and Securities Borrowed or Purchased Under Agreements to Resell Netting of financial instruments - repurchase agreements (parenthetical) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Assets Sold under Agreements to Repurchase [Line Items]
 
 
Federal Funds Sold
$ 97 
$ 29 
Securities Available for Sale (Detail) (USD $)
In Millions, unless otherwise specified
9 Months Ended 12 Months Ended
Sep. 30, 2013
Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
$ 22,498 
$ 21,087 
Unrealized Gains
524 
880 
Unrealized Losses
396 
14 
Available-for-sale Securities
22,626 
21,953 
US Treasury Securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
792 
212 
Unrealized Gains
7 
10 
Unrealized Losses
28 
0 
Available-for-sale Securities
771 
222 
US Government Agencies Debt Securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
2,167 
1,987 
Unrealized Gains
53 
85 
Unrealized Losses
49 
3 
Available-for-sale Securities
2,171 
2,069 
US States and Political Subdivisions Debt Securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
239 
310 
Unrealized Gains
8 
15 
Unrealized Losses
2 
5 
Available-for-sale Securities
245 
320 
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
18,223 
17,416 
Unrealized Gains
449 
756 
Unrealized Losses
314 
3 
Available-for-sale Securities
18,358 
18,169 
Mortgage-backed Securities, Issued by Private Enterprises [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
167 
205 
Unrealized Gains
1 
4 
Unrealized Losses
2 
0 
Available-for-sale Securities
166 
209 
Asset-backed Securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
95 
214 
Unrealized Gains
2 
5 
Unrealized Losses
1 
3 
Available-for-sale Securities
96 
216 
Other Debt Obligations [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
40 
42 
Unrealized Gains
3 
4 
Unrealized Losses
0 
0 
Available-for-sale Securities
43 
46 
Equity Securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
775 1
701 1
Unrealized Gains
1 1
1 1
Unrealized Losses
0 1
0 1
Available-for-sale Securities
$ 776 1
$ 702 1
Securities Available for Sale (Parenthetical) (Detail) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Equity Securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Federal Home Loan Bank (FHLB) of Atlanta stock (par value)
$ 266 
$ 229 
Federal Reserve Bank Stock
402 
402 
Mutual fund investments (par value)
107 
69 
Equity Securities |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Investments, Fair Value Disclosure
$ 1 
$ 2 
Interest and dividends on SAFS (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Schedule of Available-for-sale Securities [Line Items]
 
 
 
 
Interest Income, Securities, Taxable
$ 132 
$ 132 
$ 397 
$ 454 
Interest Income, Securities, Tax Exempt
3 
4 
8 
12 
Dividend Income, Operating
8 
8 
24 
53 1
Interest and Dividend Income, Securities, Available-for-sale
$ 143 
$ 144 
$ 429 
$ 519 1
Interest and dividends on SAFS (parenthetical) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Schedule of Available-for-sale Securities [Line Items]
 
 
 
 
Dividends On Certain Equity Securities
$ 0 
$ 0 
$ 0 
$ 31 1
Securities Available for Sale - Additional Information (Detail) (USD $)
Sep. 30, 2013
Dec. 31, 2012
Sep. 30, 2013
Mortgage-backed Securities, Issued by Private Enterprises [Member]
Dec. 31, 2012
Mortgage-backed Securities, Issued by Private Enterprises [Member]
Sep. 30, 2013
Impaired Securities
Mortgage-backed Securities, Issued by Private Enterprises [Member]
Sep. 30, 2012
Impaired Securities
Mortgage-backed Securities, Issued by Private Enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
 
 
 
 
 
 
Available-for-sale Securities Pledged as Collateral
$ 10,000,000,000 
$ 10,600,000,000 
 
 
 
 
Securities AFS Pledged Transferee Can Transfer
0 
0 
 
 
 
 
Available-for-sale Securities
$ 22,626,000,000 
$ 21,953,000,000 
$ 166,000,000 
$ 209,000,000 
$ 23,000,000 
$ 217,000,000 
Amortized Cost and Fair Value of Investments in Debt Securities by Estimated Average Life (Detail) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Distribution of Maturities: Amortized Cost, 1 Year or Less
$ 1,943 
Distribution of Maturities: Amortized Cost, 1-5 Years
11,271 
Distribution of Maturities: Amortized Cost, 5-10 Years
4,983 
Distribution of Maturities: Amortized Cost, After 10 Years
3,526 
Distribution of Maturities: Amortized Cost, Total
21,723 
Distribution of Maturities: Fair Value, 1 Year or Less
2,038 
Distribution of Maturities: Fair Value, 1-5 Years
11,641 
Distribution of Maturities: Fair Value, 5-10 Years
4,839 
Distribution of Maturities: Fair Value, After 10 Years
3,332 
Distribution of Maturities: Fair Value, Total
21,850 
Available For Sale Securities Debt Maturities, Yield, One Year Or Less
2.89% 1
Available For Sale Securities Debt Maturities, Yield, After One Through Five Years
2.93% 1
Available For Sale Securities Debt Maturities, Yield, After Five Through Ten Years
2.20% 1
Available For Sale Securities Debt Maturities, Yield, After Ten Years
2.69% 1
Available For Sale Securities Debt Maturities, Yield
2.72% 1
US Treasury Securities [Member]
 
Distribution of Maturities: Amortized Cost, 1 Year or Less
1 
Distribution of Maturities: Amortized Cost, 1-5 Years
201 
Distribution of Maturities: Amortized Cost, 5-10 Years
590 
Distribution of Maturities: Amortized Cost, After 10 Years
0 
Distribution of Maturities: Amortized Cost, Total
792 
Distribution of Maturities: Fair Value, 1 Year or Less
1 
Distribution of Maturities: Fair Value, 1-5 Years
208 
Distribution of Maturities: Fair Value, 5-10 Years
562 
Distribution of Maturities: Fair Value, After 10 Years
0 
Distribution of Maturities: Fair Value, Total
771 
US Government Agencies Debt Securities
 
Distribution of Maturities: Amortized Cost, 1 Year or Less
41 
Distribution of Maturities: Amortized Cost, 1-5 Years
1,410 
Distribution of Maturities: Amortized Cost, 5-10 Years
563 
Distribution of Maturities: Amortized Cost, After 10 Years
153 
Distribution of Maturities: Amortized Cost, Total
2,167 
Distribution of Maturities: Fair Value, 1 Year or Less
41 
Distribution of Maturities: Fair Value, 1-5 Years
1,458 
Distribution of Maturities: Fair Value, 5-10 Years
523 
Distribution of Maturities: Fair Value, After 10 Years
149 
Distribution of Maturities: Fair Value, Total
2,171 
US States and Political Subdivisions Debt Securities [Member]
 
Distribution of Maturities: Amortized Cost, 1 Year or Less
97 
Distribution of Maturities: Amortized Cost, 1-5 Years
89 
Distribution of Maturities: Amortized Cost, 5-10 Years
9 
Distribution of Maturities: Amortized Cost, After 10 Years
44 
Distribution of Maturities: Amortized Cost, Total
239 
Distribution of Maturities: Fair Value, 1 Year or Less
99 
Distribution of Maturities: Fair Value, 1-5 Years
93 
Distribution of Maturities: Fair Value, 5-10 Years
10 
Distribution of Maturities: Fair Value, After 10 Years
43 
Distribution of Maturities: Fair Value, Total
245 
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
 
Distribution of Maturities: Amortized Cost, 1 Year or Less
1,730 
Distribution of Maturities: Amortized Cost, 1-5 Years
9,369 
Distribution of Maturities: Amortized Cost, 5-10 Years
3,795 
Distribution of Maturities: Amortized Cost, After 10 Years
3,329 
Distribution of Maturities: Amortized Cost, Total
18,223 
Distribution of Maturities: Fair Value, 1 Year or Less
1,824 
Distribution of Maturities: Fair Value, 1-5 Years
9,677 
Distribution of Maturities: Fair Value, 5-10 Years
3,717 
Distribution of Maturities: Fair Value, After 10 Years
3,140 
Distribution of Maturities: Fair Value, Total
18,358 
Mortgage-backed Securities, Issued by Private Enterprises [Member]
 
Distribution of Maturities: Amortized Cost, 1 Year or Less
0 
Distribution of Maturities: Amortized Cost, 1-5 Years
160 
Distribution of Maturities: Amortized Cost, 5-10 Years
7 
Distribution of Maturities: Amortized Cost, After 10 Years
0 
Distribution of Maturities: Amortized Cost, Total
167 
Distribution of Maturities: Fair Value, 1 Year or Less
0 
Distribution of Maturities: Fair Value, 1-5 Years
159 
Distribution of Maturities: Fair Value, 5-10 Years
7 
Distribution of Maturities: Fair Value, After 10 Years
0 
Distribution of Maturities: Fair Value, Total
166 
Asset-backed Securities [Member]
 
Distribution of Maturities: Amortized Cost, 1 Year or Less
74 
Distribution of Maturities: Amortized Cost, 1-5 Years
20 
Distribution of Maturities: Amortized Cost, 5-10 Years
1 
Distribution of Maturities: Amortized Cost, After 10 Years
0 
Distribution of Maturities: Amortized Cost, Total
95 
Distribution of Maturities: Fair Value, 1 Year or Less
73 
Distribution of Maturities: Fair Value, 1-5 Years
21 
Distribution of Maturities: Fair Value, 5-10 Years
2 
Distribution of Maturities: Fair Value, After 10 Years
0 
Distribution of Maturities: Fair Value, Total
96 
Other Debt Obligations [Member]
 
Distribution of Maturities: Amortized Cost, 1 Year or Less
0 
Distribution of Maturities: Amortized Cost, 1-5 Years
22 
Distribution of Maturities: Amortized Cost, 5-10 Years
18 
Distribution of Maturities: Amortized Cost, After 10 Years
0 
Distribution of Maturities: Amortized Cost, Total
40 
Distribution of Maturities: Fair Value, 1 Year or Less
0 
Distribution of Maturities: Fair Value, 1-5 Years
25 
Distribution of Maturities: Fair Value, 5-10 Years
18 
Distribution of Maturities: Fair Value, After 10 Years
0 
Distribution of Maturities: Fair Value, Total
$ 43 
Securities with Unrealized Losses (Detail) (USD $)
In Millions, unless otherwise specified
9 Months Ended 12 Months Ended
Sep. 30, 2013
Dec. 31, 2012
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
$ 8,460 
$ 1,511 
Less than twelve months, Unrealized Losses
389 
6 
Twelve months or longer, Fair Value
135 
40 
Twelve months or longer, Unrealized Losses
7 
8 
Total, Fair Value
8,595 
1,551 
Total, Unrealized Losses
396 
14 
Temporarily Impaired Securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
8,347 
1,511 
Less than twelve months, Unrealized Losses
387 
6 
Twelve months or longer, Fair Value
135 
37 
Twelve months or longer, Unrealized Losses
7 
7 
Total, Fair Value
8,482 
1,548 
Total, Unrealized Losses
394 
13 
Temporarily Impaired Securities |
US Treasury Securities [Member]
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
563 
 
Less than twelve months, Unrealized Losses
28 
 
Twelve months or longer, Fair Value
0 
 
Twelve months or longer, Unrealized Losses
0 
 
Total, Fair Value
563 
 
Total, Unrealized Losses
28 
 
Temporarily Impaired Securities |
US Government Agencies Debt Securities
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
637 
298 
Less than twelve months, Unrealized Losses
48 
3 
Twelve months or longer, Fair Value
18 
0 
Twelve months or longer, Unrealized Losses
1 
0 
Total, Fair Value
655 
298 
Total, Unrealized Losses
49 
3 
Temporarily Impaired Securities |
US States and Political Subdivisions Debt Securities [Member]
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
0 
1 
Less than twelve months, Unrealized Losses
0 
0 
Twelve months or longer, Fair Value
20 
24 
Twelve months or longer, Unrealized Losses
2 
5 
Total, Fair Value
20 
25 
Total, Unrealized Losses
2 
5 
Temporarily Impaired Securities |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
7,147 
1,212 
Less than twelve months, Unrealized Losses
311 
3 
Twelve months or longer, Fair Value
84 
0 
Twelve months or longer, Unrealized Losses
3 
0 
Total, Fair Value
7,231 
1,212 
Total, Unrealized Losses
314 
3 
Temporarily Impaired Securities |
Asset-backed Securities [Member]
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
0 
0 
Less than twelve months, Unrealized Losses
0 
0 
Twelve months or longer, Fair Value
13 
13 
Twelve months or longer, Unrealized Losses
1 
2 
Total, Fair Value
13 
13 
Total, Unrealized Losses
1 
2 
Other Than Temporarily Impaired Securities [Member]
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
113 1
0 1
Less than twelve months, Unrealized Losses
2 1
0 1
Twelve months or longer, Fair Value
0 1
3 1
Twelve months or longer, Unrealized Losses
0 1
1 1
Total, Fair Value
113 1
3 1
Total, Unrealized Losses
2 1
1 1
Other Than Temporarily Impaired Securities [Member] |
Asset-backed Securities [Member]
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
 
0 1
Less than twelve months, Unrealized Losses
 
0 1
Twelve months or longer, Fair Value
 
3 1
Twelve months or longer, Unrealized Losses
 
1 1
Total, Fair Value
 
3 1
Total, Unrealized Losses
 
1 1
Other Than Temporarily Impaired Securities [Member] |
Mortgage-backed Securities, Issued by Private Enterprises [Member]
 
 
Investments, Unrealized Loss Position [Line Items]
 
 
Less than twelve months, Fair Value
113 1
 
Less than twelve months, Unrealized Losses
2 1
 
Twelve months or longer, Fair Value
0 1
 
Twelve months or longer, Unrealized Losses
0 1
 
Total, Fair Value
113 1
 
Total, Unrealized Losses
$ 2 1
 
Gross Realized Gains and Losses on Sales and OTTI on Securities Available for Sale (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Gross realized gains
$ 0 
$ 1,944 1
$ 4 
$ 1,980 1
Available-for-sale Securities, Gross Realized Losses
0 
0 
(1)
0 
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities
0 
(3)
(1)
(7)
Gain (Loss) on Sale of Securities, Net
$ 0 2
$ 1,941 3
$ 2 3
$ 1,973 3
Gross Realized Gains and Losses on Sales and OTTI on Securities Available for Sale (parenthetical) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2012
Gain (Loss) on Investments [Line Items]
 
 
Gain (Loss) on Contract Termination
$ 305 
$ 305 
OTTI Losses on Available for Sale Securities (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities
$ 0 
$ 3 
$ 1 
$ 7 
Mortgage-backed Securities, Issued by Private Enterprises [Member]
 
 
 
 
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities
0 
0 
0 
0 
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss, before Tax, Including Portion Attributable to Noncontrolling Interest, Available-for-sale Securities
0 
(3)1
(1)1
(7)1
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities
$ 0 
$ 3 1
$ 1 1
$ 7 1
Significant Inputs Considered in Determining the Measurement of Credit Losses Recognized in Earnings for Securities (Detail)
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Minimum [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Current default rate
2.00% 
2.00% 
Prepayment rate
7.00% 
7.00% 
Inputs Considered In Determining Measurement Of Credit Losses Loss Severity
46.00% 
40.00% 
Upper Limit
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Current default rate
9.00% 
9.00% 
Prepayment rate
21.00% 
21.00% 
Inputs Considered In Determining Measurement Of Credit Losses Loss Severity
74.00% 
56.00% 
Composition of the Company's Loan Portfolio (Detail) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
$ 124,340 1
$ 121,470 1
Loans Held for Sale
2,462 2
3,399 
Commercial Portfolio Segment [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
61,435 
58,888 
Residential Portfolio Segment [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
43,041 
43,199 
Consumer Portfolio Segment [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
19,864 
19,383 
Commercial and Industrial [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
55,943 
54,048 
Commercial Real Estate [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
4,755 
4,127 
Commercial Construction [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
737 
713 
Residential Guaranteed [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
3,527 
4,252 
Residential Nonguaranteed [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
24,106 3 4
23,389 3 5
Home Equity Line of Credit [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
14,826 3
14,805 3
Residential Construction [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
582 3
753 3
Federally Guaranteed Student Loans [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
5,489 
5,357 
Consumer Other Direct [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
2,670 6
2,396 6
Consumer Indirect [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
11,035 6
10,998 6
Consumer Credit Card Financing Receivable [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
670 6
632 6
Loans Held For Investment [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
124,340 
121,470 
Loans Held For Investment [Member] |
Commercial and Industrial [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
55,943 
54,048 
Loans Held For Investment [Member] |
Commercial Real Estate [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
4,755 
4,127 
Loans Held For Investment [Member] |
Commercial Construction [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
737 
713 
Loans Held For Investment [Member] |
Residential Guaranteed [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
3,527 
4,252 
Loans Held For Investment [Member] |
Residential Nonguaranteed [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
24,106 7
23,389 7
Loans Held For Investment [Member] |
Home Equity Line of Credit [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
14,826 
14,805 
Loans Held For Investment [Member] |
Residential Construction [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
582 
753 
Loans Held For Investment [Member] |
Federally Guaranteed Student Loans [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
5,489 
5,357 
Loans Held For Investment [Member] |
Consumer Other Direct [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
2,670 
2,396 
Loans Held For Investment [Member] |
Consumer Indirect [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
11,035 
10,998 
Loans Held For Investment [Member] |
Consumer Credit Card Financing Receivable [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
670 
632 
Commercial Portfolio Segment [Member] |
Loans |
Loans Held For Investment [Member] |
Commercial Portfolio Segment [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
61,435 
58,888 
Residential Portfolio Segment [Member] |
Loans |
Loans Held For Investment [Member] |
Residential Portfolio Segment [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
43,041 
43,199 
Consumer Portfolio Segment [Member] |
Loans |
Loans Held For Investment [Member] |
Consumer Portfolio Segment [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
$ 19,864 
$ 19,383 
Composition of the Company's Loan Portfolio (Parenthetical) (Detail) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans Receivable, Fair Value Disclosure
$ 316 1
$ 379 1
Residential Portfolio Segment [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans Receivable, Fair Value Disclosure
316 
379 
Residential Nonguaranteed [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans Receivable, Fair Value Disclosure
$ 316 
$ 379 
Loans - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
Value of loans transferred from LHFI to LHFS
$ (56,000,000)
$ (2,000,000,000)
$ (200,000,000)
$ (3,112,000,000)
 
Transfer of Loans Held-for-sale to Portfolio Loans
11,000,000 
3,000,000 
28,000,000 
34,000,000 
 
Loans held for investment sold
99,000,000 
515,000,000 
761,000,000 
1,500,000,000 
 
Gain (Loss) on Sales of Loans, Net
1,000,000 
1,000,000 
7,000,000 
36,000,000 
 
Loans and Leases Receivable, Impaired, Commitment to Lend
4,000,000 
 
4,000,000 
 
1,000,000 
Accrual Loans [Member]
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
Financing Receivable, Modifications, Recorded Investment
2,700,000,000 
 
2,700,000,000 
 
2,400,000,000 
Accruing TDRs current
96.00% 
 
96.00% 
 
95.00% 
Federally Guaranteed Student Loans [Member]
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
Percentage of Loan Portfolio Current
84.00% 
 
84.00% 
 
89.00% 
Residential Guaranteed [Member]
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
Percentage of Loan Portfolio Current
82.00% 
 
82.00% 
 
83.00% 
Minimum [Member] |
Commercial Portfolio Segment [Member]
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
Loans And Leases Receivable Individually Evaluated For Impairment
3,000,000 
 
3,000,000 
 
3,000,000 
Cross-Border Outstanding Loans
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
Loans and Leases Receivable, Gross, Foreign
827,000,000 
 
827,000,000 
 
562,000,000 
Residential Mortgage |
Risk Level, High
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
Concentration of credit risk, maximum exposure
12,800,000,000 
 
12,800,000,000 
 
13,700,000,000 
Residential Portfolio Segment [Member]
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
Concentration of credit risk, maximum exposure
43,000,000,000 
 
43,000,000,000 
 
43,200,000,000 
Maximum Exposure to Loss, Percent
35.00% 
 
35.00% 
 
36.00% 
Government guaranteed percent
8.00% 
 
8.00% 
 
10.00% 
Commitments to Extend Credit |
Home Equity Line of Credit [Member]
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
Concentration of credit risk, maximum exposure
11,200,000,000 
 
11,200,000,000 
 
11,700,000,000 
Loan Origination Commitments |
ERROR in label resolution.
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
Concentration of credit risk, maximum exposure
3,900,000,000 
 
3,900,000,000 
 
9,200,000,000 
Interest Only Loans |
Risk Level, High
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
Concentration of credit risk, maximum exposure
6,000,000,000 
 
6,000,000,000 
 
7,600,000,000 
Interest Only Loans, High LTV First Lien and Junior Lien, With No Mortgage Insurance [Member] |
Risk Level, High
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
Concentration of credit risk, maximum exposure
1,200,000,000 
 
1,200,000,000 
 
1,500,000,000 
Amortizing Loans, High LTV First Lien and Junior Lien, With No Mortgage Insurance [Member] |
Risk Level, High
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
Concentration of credit risk, maximum exposure
$ 6,800,000,000 
 
$ 6,800,000,000 
 
$ 6,100,000,000 
LHFI by Credit Quality Indicator (Detail) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
$ 124,340 1
$ 121,470 1
Commercial and Industrial [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
55,943 
54,048 
Commercial Real Estate [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
4,755 
4,127 
Commercial Construction [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
737 
713 
Residential Nonguaranteed [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
24,106 2 3
23,389 2 4
Home Equity Line of Credit [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
14,826 2
14,805 2
Residential Construction [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
582 2
753 2
Consumer Other Direct [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
2,670 5
2,396 5
Consumer Indirect [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
11,035 5
10,998 5
Consumer Credit Card Financing Receivable [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
670 5
632 5
Pass |
Commercial and Industrial [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
54,162 
52,292 
Pass |
Commercial Real Estate [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
4,421 
3,564 
Pass |
Commercial Construction [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
672 
506 
Criticized Accruing |
Commercial and Industrial [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
1,565 
1,562 
Criticized Accruing |
Commercial Real Estate [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
292 
497 
Criticized Accruing |
Commercial Construction [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
48 
173 
Criticized Nonaccruing |
Commercial and Industrial [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
216 
194 
Criticized Nonaccruing |
Commercial Real Estate [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
42 
66 
Criticized Nonaccruing |
Commercial Construction [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
17 
34 
FICO Score 700 and Above [Member] |
Residential Nonguaranteed [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
18,593 2
17,410 2
FICO Score 700 and Above [Member] |
Home Equity Line of Credit [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
11,588 2
11,339 2
FICO Score 700 and Above [Member] |
Residential Construction [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
439 2
561 2
FICO Score 700 and Above [Member] |
Consumer Other Direct [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
2,238 5
1,980 5
FICO Score 700 and Above [Member] |
Consumer Indirect [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
8,214 5
8,300 5
FICO Score 700 and Above [Member] |
Consumer Credit Card Financing Receivable [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
466 5
435 5
FICO Score Between 620 and 699 |
Residential Nonguaranteed [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
3,740 2
3,850 2
FICO Score Between 620 and 699 |
Home Equity Line of Credit [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
2,250 2
2,297 2
FICO Score Between 620 and 699 |
Residential Construction [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
101 2
123 2
FICO Score Between 620 and 699 |
Consumer Other Direct [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
372 5
350 5
FICO Score Between 620 and 699 |
Consumer Indirect [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
2,223 5
2,038 5
FICO Score Between 620 and 699 |
Consumer Credit Card Financing Receivable [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
164 5
152 5
FICO Score Below 620 |
Residential Nonguaranteed [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
1,773 2 6
2,129 2 6
FICO Score Below 620 |
Home Equity Line of Credit [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
988 2 6
1,169 2 6
FICO Score Below 620 |
Residential Construction [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
42 2 6
69 2 6
FICO Score Below 620 |
Consumer Other Direct [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
60 5 6
66 5 6
FICO Score Below 620 |
Consumer Indirect [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
598 5 6
660 5 6
FICO Score Below 620 |
Consumer Credit Card Financing Receivable [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
$ 40 5 6
$ 45 5 6
LHFI by Credit Quality Indicator (Parenthetical) (Detail) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
$ 124,340 1
$ 121,470 1
Residential Guaranteed [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
3,527 
4,252 
Residential Nonguaranteed [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
24,106 2 3
23,389 2 4
Federally Guaranteed Student Loans [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
5,489 
5,357 
FICO Score 700 and Above [Member] |
Residential Guaranteed [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
3,500 
4,300 
FICO Score 700 and Above [Member] |
Residential Nonguaranteed [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Loans held for investment
$ 18,593 2
$ 17,410 2
Payment Status for the LHFI Portfolio (Detail) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
$ 121,335 
$ 118,008 
Accruing 30-89 Days Past Due
805 
1,133 
Accruing 90+ Days Past Due
1,163 
782 
Nonaccruing
1,037 1 2
1,547 1 3
Total
124,340 4
121,470 4
Commercial Portfolio Segment [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
61,089 
58,476 
Accruing 30-89 Days Past Due
48 
92 
Accruing 90+ Days Past Due
23 
26 
Nonaccruing
275 2
294 3
Total
61,435 
58,888 
Residential Portfolio Segment [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
41,335 
40,863 
Accruing 30-89 Days Past Due
321 
395 
Accruing 90+ Days Past Due
633 
713 
Nonaccruing
752 2
1,228 3
Total
43,041 
43,199 
Consumer Portfolio Segment [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
18,911 
18,669 
Accruing 30-89 Days Past Due
436 
646 
Accruing 90+ Days Past Due
507 
43 
Nonaccruing
10 2
25 3
Total
19,864 
19,383 
Commercial and Industrial [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
55,663 
53,747 
Accruing 30-89 Days Past Due
43 
81 
Accruing 90+ Days Past Due
21 
26 
Nonaccruing
216 2
194 3
Total
55,943 
54,048 
Commercial Real Estate [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
4,706 
4,050 
Accruing 30-89 Days Past Due
5 
11 
Accruing 90+ Days Past Due
2 
0 
Nonaccruing
42 2
66 3
Total
4,755 
4,127 
Commercial Construction [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
720 
679 
Accruing 30-89 Days Past Due
0 
0 
Accruing 90+ Days Past Due
0 
0 
Nonaccruing
17 2
34 3
Total
737 
713 
Residential Guaranteed [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
2,878 
3,523 
Accruing 30-89 Days Past Due
40 
39 
Accruing 90+ Days Past Due
609 
690 
Nonaccruing
0 2
0 3
Total
3,527 
4,252 
Residential Nonguaranteed [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
23,463 5
22,401 6
Accruing 30-89 Days Past Due
156 5
192 6
Accruing 90+ Days Past Due
23 5
21 6
Nonaccruing
464 2 5
775 3 6
Total
24,106 5 7
23,389 6 7
Home Equity Line of Credit [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
14,496 
14,314 
Accruing 30-89 Days Past Due
121 
149 
Accruing 90+ Days Past Due
0 
1 
Nonaccruing
209 2
341 3
Total
14,826 7
14,805 7
Residential Construction [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
498 
625 
Accruing 30-89 Days Past Due
4 
15 
Accruing 90+ Days Past Due
1 
1 
Nonaccruing
79 2
112 3
Total
582 7
753 7
Federally Guaranteed Student Loans [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
4,629 
4,769 
Accruing 30-89 Days Past Due
361 
556 
Accruing 90+ Days Past Due
499 
32 
Nonaccruing
0 2
0 3
Total
5,489 
5,357 
Consumer Other Direct [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
2,650 
2,372 
Accruing 30-89 Days Past Due
15 
15 
Accruing 90+ Days Past Due
1 
3 
Nonaccruing
4 2
6 3
Total
2,670 8
2,396 8
Consumer Indirect [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
10,974 
10,909 
Accruing 30-89 Days Past Due
54 
68 
Accruing 90+ Days Past Due
1 
2 
Nonaccruing
6 2
19 3
Total
11,035 8
10,998 8
Consumer Credit Card Financing Receivable [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Accruing Current
658 
619 
Accruing 30-89 Days Past Due
6 
7 
Accruing 90+ Days Past Due
6 
6 
Nonaccruing
0 2
0 3
Total
$ 670 8
$ 632 8
Payment Status for the LHFI Portfolio (Parenthetical) (Detail) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Financing Receivable, Impaired [Line Items]
 
 
Loans Receivable, Fair Value Disclosure
$ 316 1
$ 379 1
Nonaccruing 90 Plus Days Past Due
718 
975 
Residential Portfolio Segment [Member]
 
 
Financing Receivable, Impaired [Line Items]
 
 
Loans Receivable, Fair Value Disclosure
316 
379 
Residential Nonguaranteed [Member]
 
 
Financing Receivable, Impaired [Line Items]
 
 
Loans Receivable, Fair Value Disclosure
$ 316 
$ 379 
LHFI Considered Impaired (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Financing Receivable, Impaired [Line Items]
 
 
 
 
 
Impaired Financing Receivable, Unpaid Principal Balance
$ 3,578 
 
$ 3,578 
 
$ 3,523 
Impaired Financing Receivable, Recorded Investment
3,052 1
 
3,052 1
 
3,078 1
Impaired Financing Receivable, Related Allowance
374 
 
374 
 
364 
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment
3,081 
3,167 
3,068 
3,214 
 
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method
34 2
33 2
102 2
99 2
 
Commercial Portfolio Segment [Member]
 
 
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
 
 
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment
90 
213 
65 
240 
 
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method
0 2
2 2
1 2
5 2
 
Impaired Financing Receivable, Unpaid Principal Balance
51 
 
51 
 
66 
Impaired Financing Receivable, Recorded Investment
42 1
 
42 1
 
48 1
Impaired Financing Receivable, Related Allowance
14 
 
14 
 
7 
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment
42 
71 
30 
70 
 
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method
0 2
0 2
1 2
1 2
 
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance
96 
 
96 
 
110 
Impaired Financing Receivable, with No Related Allowance, Recorded Investment
67 1
 
67 1
 
90 1
Residential Portfolio Segment [Member]
 
 
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
 
 
Impaired Financing Receivable, Unpaid Principal Balance
3,318 
 
3,318 
 
3,266 
Impaired Financing Receivable, Recorded Investment
2,831 1
 
2,831 1
 
2,859 1
Impaired Financing Receivable, Related Allowance
352 
 
352 
 
348 
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment
2,835 
2,816 
2,853 
2,834 
 
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method
33 2
30 2
96 2
90 2
 
Consumer Portfolio Segment [Member]
 
 
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
 
 
Impaired Financing Receivable, Unpaid Principal Balance
113 
 
113 
 
81 
Impaired Financing Receivable, Recorded Investment
112 1
 
112 1
 
81 1
Impaired Financing Receivable, Related Allowance
8 
 
8 
 
9 
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment
114 
67 
120 
70 
 
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method
1 2
1 2
4 2
3 2
 
Commercial and Industrial [Member]
 
 
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
 
 
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment
84 
97 
58 
107 
 
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method
0 2
0 2
1 2
1 2
 
Impaired Financing Receivable, Unpaid Principal Balance
37 
 
37 
 
46 
Impaired Financing Receivable, Recorded Investment
35 1
 
35 1
 
38 1
Impaired Financing Receivable, Related Allowance
14 
 
14 
 
6 
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment
35 
44 
25 
42 
 
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method
0 2
0 2
1 2
1 2
 
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance
90 
 
90 
 
59 
Impaired Financing Receivable, with No Related Allowance, Recorded Investment
63 1
 
63 1
 
40 1
Commercial Real Estate [Member]
 
 
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
 
 
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment
5 
52 
6 
62 
 
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method
0 2
2 2
0 2
3 2
 
Impaired Financing Receivable, Unpaid Principal Balance
8 
 
8 
 
15 
Impaired Financing Receivable, Recorded Investment
3 1
 
3 1
 
7 1
Impaired Financing Receivable, Related Allowance
0 
 
0 
 
1 
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment
3 
21 
3 
22 
 
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method
0 2
0 2
0 2
0 2
 
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance
5 
 
5 
 
6 
Impaired Financing Receivable, with No Related Allowance, Recorded Investment
4 1
 
4 1
 
5 1
Commercial Construction [Member]
 
 
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
 
 
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment
1 
64 
1 
71 
 
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method
0 2
0 2
0 2
1 2
 
Impaired Financing Receivable, Unpaid Principal Balance
6 
 
6 
 
5 
Impaired Financing Receivable, Recorded Investment
4 1
 
4 1
 
3 1
Impaired Financing Receivable, Related Allowance
0 
 
0 
 
0 
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment
4 
6 
2 
6 
 
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method
0 2
0 2
0 2
0 2
 
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance
1 
 
1 
 
45 
Impaired Financing Receivable, with No Related Allowance, Recorded Investment
0 1
 
0 1
 
45 1
Residential Nonguaranteed [Member]
 
 
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
 
 
Impaired Financing Receivable, Unpaid Principal Balance
2,348 
 
2,348 
 
2,346 
Impaired Financing Receivable, Recorded Investment
2,000 1
 
2,000 1
 
2,046 1
Impaired Financing Receivable, Related Allowance
230 
 
230 
 
234 
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment
2,002 
2,053 
2,013 
2,059 
 
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method
23 2
20 2
71 2
62 2
 
Home Equity Line of Credit [Member]
 
 
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
 
 
Impaired Financing Receivable, Unpaid Principal Balance
708 
 
708 
 
661 
Impaired Financing Receivable, Recorded Investment
633 1
 
633 1
 
612 1
Impaired Financing Receivable, Related Allowance
96 
 
96 
 
88 
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment
634 
536 
640 
541 
 
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method
7 2
7 2
17 2
20 2
 
Residential Construction [Member]
 
 
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
 
 
Impaired Financing Receivable, Unpaid Principal Balance
262 
 
262 
 
259 
Impaired Financing Receivable, Recorded Investment
198 1
 
198 1
 
201 1
Impaired Financing Receivable, Related Allowance
26 
 
26 
 
26 
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment
199 
227 
200 
234 
 
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method
3 2
3 2
8 2
8 2
 
Consumer Other Direct [Member]
 
 
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
 
 
Impaired Financing Receivable, Unpaid Principal Balance
15 
 
15 
 
14 
Impaired Financing Receivable, Recorded Investment
15 1
 
15 1
 
14 1
Impaired Financing Receivable, Related Allowance
1 
 
1 
 
2 
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment
15 
13 
16 
13 
 
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method
0 2
0 2
0 2
0 2
 
Consumer Indirect [Member]
 
 
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
 
 
Impaired Financing Receivable, Unpaid Principal Balance
83 
 
83 
 
46 
Impaired Financing Receivable, Recorded Investment
82 1
 
82 1
 
46 1
Impaired Financing Receivable, Related Allowance
4 
 
4 
 
2 
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment
84 
31 
87 
32 
 
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method
1 2
1 2
3 2
2 2
 
Consumer Credit Card Financing Receivable [Member]
 
 
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
 
 
Impaired Financing Receivable, Unpaid Principal Balance
15 
 
15 
 
21 
Impaired Financing Receivable, Recorded Investment
15 1
 
15 1
 
21 1
Impaired Financing Receivable, Related Allowance
3 
 
3 
 
5 
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment
15 
23 
17 
25 
 
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method
0 2
0 2
1 2
1 2
 
Impaired Financing Receivables With No Related Allowance [Member]
 
 
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
 
 
Impaired Financing Receivable, Related Allowance
 
 
 
 
0 
Impaired Financing Receivables With No Related Allowance [Member] |
Commercial Portfolio Segment [Member]
 
 
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
 
 
Impaired Financing Receivable, Related Allowance
0 
 
0 
 
 
Impaired Financing Receivables With No Related Allowance [Member] |
Commercial and Industrial [Member]
 
 
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
 
 
Impaired Financing Receivable, Related Allowance
0 
 
0 
 
0 
Impaired Financing Receivables With No Related Allowance [Member] |
Commercial Real Estate [Member]
 
 
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
 
 
Impaired Financing Receivable, Related Allowance
0 
 
0 
 
0 
Impaired Financing Receivables With No Related Allowance [Member] |
Commercial Construction [Member]
 
 
 
 
 
Financing Receivable, Impaired [Line Items]
 
 
 
 
 
Impaired Financing Receivable, Related Allowance
$ 0 
 
$ 0 
 
$ 0 
LHFI Considered Impaired (Parenthetical) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Financing Receivable, Impaired [Line Items]
 
 
 
 
Impaired Financing Receivable, Interest Income, Cash Basis Method
$ 1 
$ 6 
$ 6 
$ 15 
Nonperforming Assets (Detail) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Nonaccrual/NPLs
$ 1,037 1 2
$ 1,547 1 3
OREO
196 4
264 4
Other repossessed assets
9 
9 
Loans Held-for-sale, Other
59 
37 
Total nonperforming assets
1,301 
1,857 
Commercial Portfolio Segment [Member]
 
 
Nonaccrual/NPLs
275 2
294 3
Residential Portfolio Segment [Member]
 
 
Nonaccrual/NPLs
752 2
1,228 3
Consumer Portfolio Segment [Member]
 
 
Nonaccrual/NPLs
10 2
25 3
Commercial and Industrial [Member]
 
 
Nonaccrual/NPLs
216 2
194 3
Commercial Real Estate [Member]
 
 
Nonaccrual/NPLs
42 2
66 3
Commercial Construction [Member]
 
 
Nonaccrual/NPLs
17 2
34 3
Residential Nonguaranteed [Member]
 
 
Nonaccrual/NPLs
464 2 5
775 3 6
Home Equity Line of Credit [Member]
 
 
Nonaccrual/NPLs
209 2
341 3
Residential Construction [Member]
 
 
Nonaccrual/NPLs
79 2
112 3
Consumer Other Direct [Member]
 
 
Nonaccrual/NPLs
4 2
6 3
Consumer Indirect [Member]
 
 
Nonaccrual/NPLs
$ 6 2
$ 19 3
Nonperforming Assets (Parenthetical) (Detail) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Receivables on federally insured FHA/VA foreclosures
$ 175 
$ 140 
Loans TDR Modifications (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
contracts
Sep. 30, 2012
contracts
Sep. 30, 2013
contracts
Sep. 30, 2012
contracts
Financing Receivable, Modifications [Line Items]
 
 
 
 
Financing Receivable, Restructured During Period, Number Of Contracts
2,111 1
2,292 1
6,980 1
5,647 1
Financing Receivable, Amount Restructured During Period, Principal Forgiveness Granted
$ 0 1 2
$ 10 1 3
$ 18 1 2
$ 24 1 3
Financing Receivable, Amount Restructured During Period, Rate Modifications Granted
84 1 4
49 1 5
208 1 4
169 1 5
Financing Receivable, Amount Restructured During Period, Term Extension and/or Other Concessions Granted
84 1
56 1
290 1
132 1
Financing Receivable, Amount Restructured During Period
168 1 2 4
115 1 3 5
516 1 2 4
325 1 3 5
Consumer Indirect [Member]
 
 
 
 
Financing Receivable, Modifications [Line Items]
 
 
 
 
Financing Receivable, Restructured During Period, Number Of Contracts
883 1
1,000 1
2,617 1
1,795 1
Financing Receivable, Amount Restructured During Period, Principal Forgiveness Granted
0 1 2
 
0 1 2
0 1 3
Financing Receivable, Amount Restructured During Period, Rate Modifications Granted
0 1 4
0 1 5
0 1 4
0 1 5
Financing Receivable, Amount Restructured During Period, Term Extension and/or Other Concessions Granted
18 1
17 1
50 1
31 1
Financing Receivable, Amount Restructured During Period
18 1 2 4
17 1 3 5
50 1 2 4
31 1 3 5
Commercial and Industrial [Member]
 
 
 
 
Financing Receivable, Modifications [Line Items]
 
 
 
 
Financing Receivable, Restructured During Period, Number Of Contracts
28 1
87 1
124 1
270 1
Financing Receivable, Amount Restructured During Period, Principal Forgiveness Granted
0 1 2
4 1 3
18 1 2
4 1 3
Financing Receivable, Amount Restructured During Period, Rate Modifications Granted
0 1 4
1 1 5
2 1 4
3 1 5
Financing Receivable, Amount Restructured During Period, Term Extension and/or Other Concessions Granted
39 1
6 1
89 1
21 1
Financing Receivable, Amount Restructured During Period
39 1 2 4
11 1 3 5
109 1 2 4
28 1 3 5
Commercial Real Estate [Member]
 
 
 
 
Financing Receivable, Modifications [Line Items]
 
 
 
 
Financing Receivable, Restructured During Period, Number Of Contracts
0 1
4 1
5 1
27 1
Financing Receivable, Amount Restructured During Period, Principal Forgiveness Granted
0 1 2
5 1 3
0 1 2
17 1 3
Financing Receivable, Amount Restructured During Period, Rate Modifications Granted
0 1 4
0 1 5
4 1 4
7 1 5
Financing Receivable, Amount Restructured During Period, Term Extension and/or Other Concessions Granted
0 1
0 1
1 1
2 1
Financing Receivable, Amount Restructured During Period
0 1 2 4
5 1 3 5
5 1 2 4
26 1 3 5
Commercial Construction [Member]
 
 
 
 
Financing Receivable, Modifications [Line Items]
 
 
 
 
Financing Receivable, Restructured During Period, Number Of Contracts
1 1
3 1
1 1
15 1
Financing Receivable, Amount Restructured During Period, Principal Forgiveness Granted
0 1 2
1 1 3
0 1 2
3 1 3
Financing Receivable, Amount Restructured During Period, Rate Modifications Granted
0 1 4
0 1 5
0 1 4
0 1 5
Financing Receivable, Amount Restructured During Period, Term Extension and/or Other Concessions Granted
0 1
2 1
0 1
13 1
Financing Receivable, Amount Restructured During Period
0 1 2 4
3 1 3 5
0 1 2 4
16 1 3 5
Residential Nonguaranteed [Member]
 
 
 
 
Financing Receivable, Modifications [Line Items]
 
 
 
 
Financing Receivable, Restructured During Period, Number Of Contracts
332 1
279 1
1,245 1
703 1
Financing Receivable, Amount Restructured During Period, Principal Forgiveness Granted
0 1 2
0 1 3
0 1 2
0 1 3
Financing Receivable, Amount Restructured During Period, Rate Modifications Granted
61 1 4
20 1 5
122 1 4
61 1 5
Financing Receivable, Amount Restructured During Period, Term Extension and/or Other Concessions Granted
14 1
1 1
84 1
2 1
Financing Receivable, Amount Restructured During Period
75 1 2 4
21 1 3 5
206 1 2 4
63 1 3 5
Home Equity Line of Credit [Member]
 
 
 
 
Financing Receivable, Modifications [Line Items]
 
 
 
 
Financing Receivable, Restructured During Period, Number Of Contracts
715 1
431 1
2,153 1
1,272 1
Financing Receivable, Amount Restructured During Period, Principal Forgiveness Granted
0 1 2
0 1 3
0 1 2
0 1 3
Financing Receivable, Amount Restructured During Period, Rate Modifications Granted
19 1 4
26 1 5
56 1 4
90 1 5
Financing Receivable, Amount Restructured During Period, Term Extension and/or Other Concessions Granted
12 1
4 1
60 1
7 1
Financing Receivable, Amount Restructured During Period
31 1 2 4
30 1 3 5
116 1 2 4
97 1 3 5
Residential Construction [Member]
 
 
 
 
Financing Receivable, Modifications [Line Items]
 
 
 
 
Financing Receivable, Restructured During Period, Number Of Contracts
25 1
165 1
242 1
340 1
Financing Receivable, Amount Restructured During Period, Principal Forgiveness Granted
0 1 2
0 1 3
0 1 2
0 1 3
Financing Receivable, Amount Restructured During Period, Rate Modifications Granted
4 1 4
0 1 5
22 1 4
1 1 5
Financing Receivable, Amount Restructured During Period, Term Extension and/or Other Concessions Granted
0 1
25 1
3 1
54 1
Financing Receivable, Amount Restructured During Period
4 1 2 4
25 1 3 5
25 1 2 4
55 1 3 5
Consumer Other Direct [Member]
 
 
 
 
Financing Receivable, Modifications [Line Items]
 
 
 
 
Financing Receivable, Restructured During Period, Number Of Contracts
30 1
42 1
110 1
81 1
Financing Receivable, Amount Restructured During Period, Principal Forgiveness Granted
0 1 2
0 1 3
0 1 2
0 1 3
Financing Receivable, Amount Restructured During Period, Rate Modifications Granted
0 1 4
0 1 5
0 1 4
0 1 5
Financing Receivable, Amount Restructured During Period, Term Extension and/or Other Concessions Granted
1 1
1 1
3 1
2 1
Financing Receivable, Amount Restructured During Period
1 1 2 4
1 1 3 5
3 1 2 4
2 1 3 5
Consumer Credit Card Financing Receivable [Member]
 
 
 
 
Financing Receivable, Modifications [Line Items]
 
 
 
 
Financing Receivable, Restructured During Period, Number Of Contracts
97 1
281 1
483 1
1,144 1
Financing Receivable, Amount Restructured During Period, Principal Forgiveness Granted
0 1 2
0 1 3
0 1 2
0 1 3
Financing Receivable, Amount Restructured During Period, Rate Modifications Granted
0 1 4
2 1 5
2 1 4
7 1 5
Financing Receivable, Amount Restructured During Period, Term Extension and/or Other Concessions Granted
0 1
0 1
0 1
0 1
Financing Receivable, Amount Restructured During Period
$ 0 1 2 4
$ 2 1 3 5
$ 2 1 2 4
$ 7 1 3 5
Loans TDR modifications (parenthetical) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Financing Receivable, Impaired [Line Items]
 
 
 
 
PrincipalForgivenessRestructuringImpact
$ 0 
$ 1 
$ 2 
$ 2 
Loans Troubled Debt Restructurings (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
contracts
Sep. 30, 2012
contracts
Sep. 30, 2013
contracts
Sep. 30, 2012
contracts
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
242 
159 
738 
486 
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
$ 13 
$ 6 
$ 35 
$ 43 
Commercial and Industrial [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
3 
38 
45 
63 
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
0 
1 
0 
4 
Commercial Real Estate [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
0 
0 
4 
4 
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
0 
0 
3 
4 
Commercial Construction [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
0 
2 
1 
9 
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
0 
0 
0 
6 
Residential Nonguaranteed [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
63 
31 
219 
87 
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
9 
2 
19 
16 
Home Equity Line of Credit [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
37 
32 
138 
113 
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
2 
2 
8 
9 
Residential Construction [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
26 
6 
42 
23 
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
1 
1 
2 
3 
Consumer Other Direct [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
5 
2 
14 
4 
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
0 
0 
0 
0 
Consumer Indirect [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
55 
15 
143 
15 
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
1 
 
2 
 
Consumer Credit Card Financing Receivable [Member]
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
Financing Receivable, Restructured, Payment Default During Peiriod, Number of Contracts
53 
33 
132 
168 
Financing Receivable, Restructured, Payment Default During Period, Amortized Cost at Default
$ 0 
$ 0 
$ 1 
$ 1 
Activity in the Allowance for Credit Losses (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Jun. 30, 2013
Dec. 31, 2012
Jun. 30, 2012
Dec. 31, 2011
Components:
 
 
 
 
 
 
 
 
Balance at beginning of period
$ 2,172 
$ 2,350 
$ 2,219 
$ 2,505 
 
 
 
 
Provision for loan losses
92 
450 
448 
1,065 
 
 
 
 
Provision(Benefit) for unfunded commitments
(3)
0 
(5)
(2)
 
 
 
 
Loan charge-offs
(189)
(585)
(695)
(1,445)
 
 
 
 
Loan recoveries
43 
74 
144 
162 
 
 
 
 
Balance at end of period
2,121 
2,289 
2,121 
2,289 
 
 
 
 
Loans and Leases Receivable, Allowance
2,071 
2,239 
2,071 
2,239 
2,125 
2,174 
2,300 
2,457 
Unfunded commitments reserve
50 1
50 1
50 1
50 1
 
 
 
 
Allowance for credit losses
$ 2,121 
$ 2,289 
$ 2,121 
$ 2,289 
 
 
 
 
Activity in the ALLL by segment (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Allowance for Loan and Lease Losses [Roll Forward]
 
 
 
 
Balance at beginning of period
$ 2,125 
$ 2,300 
$ 2,174 
$ 2,457 
Provision for loan losses
92 
450 
448 
1,065 
Loan charge-offs
(189)
(585)
(695)
(1,445)
Loan recoveries
43 
74 
144 
162 
Balance at end of period
2,071 
2,239 
2,071 
2,239 
Commercial Portfolio Segment [Member]
 
 
 
 
Allowance for Loan and Lease Losses [Roll Forward]
 
 
 
 
Balance at beginning of period
919 
887 
902 
964 
Provision for loan losses
77 
127 
183 
214 
Loan charge-offs
(52)
(126)
(176)
(346)
Loan recoveries
13 
55 
48 
111 
Balance at end of period
957 
943 
957 
943 
Residential Portfolio Segment [Member]
 
 
 
 
Allowance for Loan and Lease Losses [Roll Forward]
 
 
 
 
Balance at beginning of period
1,046 
1,277 
1,131 
1,354 
Provision for loan losses
(6)
300 
184 
788 
Loan charge-offs
(109)
(425)
(430)
(1,001)
Loan recoveries
21 
10 
67 
21 
Balance at end of period
952 
1,162 
952 
1,162 
Consumer Portfolio Segment [Member]
 
 
 
 
Allowance for Loan and Lease Losses [Roll Forward]
 
 
 
 
Balance at beginning of period
160 
136 
141 
139 
Provision for loan losses
21 
23 
81 
63 
Loan charge-offs
(28)
(34)
(89)
(98)
Loan recoveries
9 
9 
29 
30 
Balance at end of period
$ 162 
$ 134 
$ 162 
$ 134 
Goodwill and Other Intangible Assets - Changes in the Carrying Amount of Goodwill by Reportable Segment (Detail) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Dec. 31, 2011
Goodwill [Line Items]
 
 
 
 
Goodwill, Transfers
$ 0 
$ 0 
 
 
Goodwill
6,369 
6,369 
6,369 
6,344 
Goodwill, Acquired During Period
 
32 
 
 
Goodwill, Impairment Loss
 
(7)
 
 
Retail Banking [Member]
 
 
 
 
Goodwill [Line Items]
 
 
 
 
Goodwill, Transfers
0 
(4,854)
 
 
Goodwill
0 
0 
0 
4,854 
Goodwill, Acquired During Period
 
0 
 
 
Goodwill, Impairment Loss
 
0 
 
 
Diversified Commercial Banking [Member]
 
 
 
 
Goodwill [Line Items]
 
 
 
 
Goodwill, Transfers
0 
(928)
 
 
Goodwill
0 
0 
0 
928 
Goodwill, Acquired During Period
 
0 
 
 
Goodwill, Impairment Loss
 
0 
 
 
Corporate and Investment Banking [Member]
 
 
 
 
Goodwill [Line Items]
 
 
 
 
Goodwill, Transfers
0 
(180)
 
 
Goodwill
0 
0 
0 
180 
Goodwill, Acquired During Period
 
0 
 
 
Goodwill, Impairment Loss
 
0 
 
 
Wealth and Investment Management [Member]
 
 
 
 
Goodwill [Line Items]
 
 
 
 
Goodwill, Transfers
0 
(382)
 
 
Goodwill
0 
0 
0 
382 
Goodwill, Acquired During Period
 
0 
 
 
Goodwill, Impairment Loss
 
0 
 
 
Consumer Banking and Private Wealth Management [Member]
 
 
 
 
Goodwill [Line Items]
 
 
 
 
Goodwill, Transfers
300 
3,930 
 
 
Goodwill
4,262 
3,962 
3,962 
0 
Goodwill, Acquired During Period
 
32 
 
 
Goodwill, Impairment Loss
 
0 
 
 
Wholesale Banking [Member]
 
 
 
 
Goodwill [Line Items]
 
 
 
 
Goodwill, Transfers
(300)
2,414 
 
 
Goodwill
2,107 
2,407 
2,407 
0 
Goodwill, Acquired During Period
 
0 
 
 
Goodwill, Impairment Loss
 
(7)
 
 
Consumer Banking and Private Wealth Management [Member] |
Wholesale Banking [Member]
 
 
 
 
Goodwill [Line Items]
 
 
 
 
Goodwill, Transfers
$ 300 
 
 
 
Goodwill and Other Intangible Assets - Changes in the Carrying Amounts of Other Intangible Assets (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Dec. 31, 2011
Servicing Asset at Fair Value, Amount
$ 1,248 
$ 1,248 
 
$ 899 
 
Amortization
(6)
(18)
(31)
 
 
Origination of Mortgage Servicing Rights (MSRs)
 
302 
244 
 
 
Due to changes in inputs or assumptions
 
260 1
(157)1
 
 
Servicing Asset at Fair Value, Other Changes in Fair Value
 
(212)2
(173)2
 
 
Servicing Asset at Fair Value, Disposals
 
1 
4 
 
 
Ending Balance
1,287 
1,287 
896 
956 
1,017 
Core Deposits [Member]
 
 
 
 
 
Amortization
 
(10)
(17)
 
 
Origination of Mortgage Servicing Rights (MSRs)
 
0 
0 
 
 
Due to changes in inputs or assumptions
 
0 
0 
 
 
Servicing Asset at Fair Value, Other Changes in Fair Value
 
0 
0 
 
 
Servicing Asset at Fair Value, Disposals
 
0 
0 
 
 
Ending Balance
7 
7 
21 
17 
38 
Mortgage Servicing Rights, Fair Value [Member]
 
 
 
 
 
Servicing Asset at Fair Value, Amount
1,248 
1,248 
831 
899 
921 
Amortization
 
0 
0 
 
 
Origination of Mortgage Servicing Rights (MSRs)
 
302 
244 
 
 
Due to changes in inputs or assumptions
 
260 1
(157)1
 
 
Servicing Asset at Fair Value, Other Changes in Fair Value
 
(212)2
(173)2
 
 
Servicing Asset at Fair Value, Disposals
 
1 
4 
 
 
Other Intangible Assets [Member]
 
 
 
 
 
Amortization
 
(8)
(14)
 
 
Origination of Mortgage Servicing Rights (MSRs)
 
0 
0 
 
 
Due to changes in inputs or assumptions
 
0 
0 
 
 
Servicing Asset at Fair Value, Other Changes in Fair Value
 
0 
0 
 
 
Servicing Asset at Fair Value, Disposals
 
0 
0 
 
 
Ending Balance
$ 32 
$ 32 
$ 44 
$ 40 
$ 58 
Goodwill and Intangible Assets - Additional Information (Details) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Goodwill, Transfers
 
 
$ 0 
$ 0 
 
Servicing Fees, Net
11,000,000 
64,000,000 
50,000,000 
215,000,000 
 
Mortgage Servicing Rights, Fair Value [Member]
 
 
 
 
 
Servicing Fees, Net
79,000,000 
75,000,000 
232,000,000 
238,000,000 
 
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together, Principal Amount Outstanding
139,700,000,000 
 
139,700,000,000 
 
144,900,000,000 
Principal Amount Outstanding of Loans Serviced For Third Parties
109,200,000,000 
 
109,200,000,000 
 
113,200,000,000 
Loan Principal Amount Outstanding Underlying Mortgage Servicing Rights Sold
 
 
2,100,000,000 
1,700,000,000 
 
Consumer Banking and Private Wealth Management [Member]
 
 
 
 
 
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount
56.00% 
 
56.00% 
 
 
Goodwill, Transfers
 
 
300,000,000 
3,930,000,000 
 
Wholesale Banking [Member]
 
 
 
 
 
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount
14.00% 
 
14.00% 
 
 
Goodwill, Transfers
 
 
(300,000,000)
2,414,000,000 
 
Wholesale Banking [Member] |
Consumer Banking and Private Wealth Management [Member]
 
 
 
 
 
Goodwill, Transfers
 
 
$ 300,000,000 
 
 
Ridgeworth Capital Management [Member]
 
 
 
 
 
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount
141.00% 
 
141.00% 
 
 
Goodwill and Other Intangible Assets - Summary of the Key Characteristics, Inputs, and Economic Assumptions Used to Estimate the Fair Value of the Company's MSRs (Detail) (USD $)
In Millions, unless otherwise specified
9 Months Ended 12 Months Ended
Sep. 30, 2013
Dec. 31, 2012
Sep. 30, 2013
Mortgage Servicing Rights, Fair Value [Member]
Dec. 31, 2012
Mortgage Servicing Rights, Fair Value [Member]
Sep. 30, 2013
Mortgage Servicing Rights, Fair Value [Member]
Dec. 31, 2012
Mortgage Servicing Rights, Fair Value [Member]
Sep. 30, 2012
Mortgage Servicing Rights, Fair Value [Member]
Dec. 31, 2011
Mortgage Servicing Rights, Fair Value [Member]
Servicing Asset at Fair Value, Amount
$ 1,248 
$ 899 
 
 
$ 1,248 
$ 899 
$ 831 
$ 921 
Prepayment rate assumption (annual)
 
 
9.00% 
16.00% 
 
 
 
 
Decline in fair value from 10% adverse change
 
 
40 
50 
 
 
 
 
Decline in fair value from 20% adverse change
 
 
77 
95 
 
 
 
 
Discount rate (annual)
 
 
12.00% 
11.00% 
 
 
 
 
Decline in fair value from 10% adverse change
 
 
62 
37 
 
 
 
 
Decline in fair value from 20% adverse change
 
 
$ 118 
$ 70 
 
 
 
 
Weighted-average life (in years)
 
 
7 years 4 months 
4 years 11 months 
 
 
 
 
Weighted-average coupon
 
 
4.40% 
4.80% 
 
 
 
 
Certain Transfers of Financial Assets and Variable Interest Entities - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Total assets
$ 171,777,000,000 
 
$ 171,777,000,000 
 
$ 173,442,000,000 
Loans Receivable Held-for-sale, Net
2,462,000,000 1
 
2,462,000,000 1
 
3,399,000,000 
Long-term Debt
9,985,000,000 2
 
9,985,000,000 2
 
9,357,000,000 2
Total liabilities
150,707,000,000 
 
150,707,000,000 
 
152,457,000,000 
Derivative Asset, Fair Value, Gross Asset
6,230,000,000 
 
6,230,000,000 
 
8,656,000,000 
Derivative Liability, Fair Value, Gross Liability
5,641,000,000 
 
5,641,000,000 
 
7,514,000,000 
Other Assets
5,036,000,000 
 
5,036,000,000 
 
5,335,000,000 
Variable Interest Entity, Primary Beneficiary
 
 
 
 
 
Loans Receivable Held-for-sale, Net
314,000,000 
 
314,000,000 
 
319,000,000 
Long-term Debt
634,000,000 
 
634,000,000 
 
666,000,000 
Residential Mortgage |
Variable Interest Entity, Not Primary Beneficiary [Member]
 
 
 
 
 
Loans and Leases Receivable, Gain (Loss) on Sales, Net
(169,000,000)
306,000,000 
112,000,000 
765,000,000 
 
Transferor's Interests in Transferred Financial Assets, Fair Value
77,000,000 
 
77,000,000 
 
98,000,000 
Total assets
368,000,000 
 
368,000,000 
 
445,000,000 
Commercial and Corporate Loans [Member] |
Variable Interest Entity, Not Primary Beneficiary [Member]
 
 
 
 
 
Total assets
1,800,000,000 
 
1,800,000,000 
 
1,800,000,000 
Total liabilities
1,700,000,000 
 
1,700,000,000 
 
1,700,000,000 
Commercial and Corporate Loans [Member] |
Variable Interest Entity, Not Primary Beneficiary [Member] |
Preference Shares
 
 
 
 
 
Total assets
3,000,000 
 
3,000,000 
 
3,000,000 
Commercial and Corporate Loans [Member] |
Variable Interest Entity, Primary Beneficiary
 
 
 
 
 
Long-term Debt
284,000,000 
 
284,000,000 
 
286,000,000 
Student Loans [Member] |
Variable Interest Entity, Primary Beneficiary
 
 
 
 
 
Long-term Debt
350,000,000 
 
350,000,000 
 
380,000,000 
Loans Receivable, Net
354,000,000 
 
354,000,000 
 
384,000,000 
Student Loans [Member] |
Variable Interest Entity, Primary Beneficiary |
Upper Limit
 
 
 
 
 
Government guaranteed percent
97.00% 
 
97.00% 
 
97.00% 
Collateralized Debt Obligations [Member] |
Variable Interest Entity, Not Primary Beneficiary [Member]
 
 
 
 
 
Total assets
1,100,000,000 
 
1,100,000,000 
 
1,200,000,000 
Collateralized Debt Obligations [Member] |
Variable Interest Entity, Not Primary Beneficiary [Member] |
Trading Assets [Member]
 
 
 
 
 
Transferor's Interests in Transferred Financial Assets, Fair Value
62,000,000 
 
62,000,000 
 
52,000,000 
CDO Securities Weighted Average Expected Maturity in Years
 
 
21 years 
 
 
Collateralized Debt Obligations [Member] |
Variable Interest Entity, Not Primary Beneficiary [Member] |
Minimum [Member]
 
 
 
 
 
Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of 10 Percent Adverse Change in Other Assumption
6,000,000 
 
6,000,000 
 
 
Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of 20 Percent Adverse Change in Other Assumption
10,000,000 
 
10,000,000 
 
 
Collateralized Debt Obligations [Member] |
Variable Interest Entity, Not Primary Beneficiary [Member] |
Minimum [Member] |
Trading Assets [Member]
 
 
 
 
 
Fair Value Inputs, Market Yield
 
 
5.00% 
 
 
Collateralized Debt Obligations [Member] |
Variable Interest Entity, Not Primary Beneficiary [Member] |
Upper Limit |
Trading Assets [Member]
 
 
 
 
 
Fair Value Inputs, Market Yield
 
 
6.50% 
 
 
Total Return Swap |
Variable Interest Entity, Not Primary Beneficiary [Member]
 
 
 
 
 
Senior financing outstanding to VIEs
1,800,000,000 
 
1,800,000,000 
 
1,900,000,000 
Derivative, Notional Amount
1,800,000,000 
 
1,800,000,000 
 
1,900,000,000 
Derivative Asset, Fair Value, Gross Asset
36,000,000 
 
36,000,000 
 
51,000,000 
Derivative Liability, Fair Value, Gross Liability
32,000,000 
 
32,000,000 
 
46,000,000 
Community Development Investments [Member] |
General Partner [Member]
 
 
 
 
 
Total assets
3,000,000 
 
3,000,000 
 
3,000,000 
Total liabilities
1,000,000 
 
1,000,000 
 
1,000,000 
Community Development Investments [Member] |
Partnership [Member]
 
 
 
 
 
Total assets
234,000,000 
 
234,000,000 
 
239,000,000 
Total liabilities
91,000,000 
 
91,000,000 
 
100,000,000 
Community Development Investments [Member] |
Variable Interest Entity, Not Primary Beneficiary [Member]
 
 
 
 
 
Deconsolidation of assets of variable interest entity
 
 
5,000,000 
 
 
Total assets
1,300,000,000 
 
1,300,000,000 
 
1,200,000,000 
Other Assets
136,000,000 
 
136,000,000 
 
63,000,000 
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount
225,000,000 
 
225,000,000 
 
110,000,000 
Community Development Investments [Member] |
Variable Interest Entity, Not Primary Beneficiary [Member] |
Limited Partner
 
 
 
 
 
Other Assets
237,000,000 
 
237,000,000 
 
186,000,000 
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount
595,000,000 
 
595,000,000 
 
505,000,000 
Loans issued by the Company to the limited partnerships
278,000,000 
 
278,000,000 
 
236,000,000 
Ridgeworth Capital Management [Member] |
Variable Interest Entity, Not Primary Beneficiary [Member]
 
 
 
 
 
Total assets
$ 273,000,000 
 
$ 273,000,000 
 
$ 372,000,000 
Asset Transfers in Which the Company has Continuing Economic Involvement (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Cash flows on interests held
$ 8 1
$ 8 1
$ 26 1
$ 23 1
Servicing or management fees
3 1
3 1
9 1
9 1
Residential Mortgage
 
 
 
 
Cash flows on interests held
8 1 2
6 1 2
24 1 2
21 1 2
Servicing or management fees
1 1 2
1 1 2
2 1 2
2 1 2
Commercial and Corporate Loans [Member]
 
 
 
 
Cash Flows Between Transferor and Transferee, Servicing Fee Advances
0 1
1 1
1 1
1 1
Servicing or management fees
2 1
2 1
7 1
7 1
Collateralized Debt Obligations [Member]
 
 
 
 
Cash flows on interests held
$ 0 1
$ 1 1
$ 1 1
$ 1 1
Net Income(loss) per common share - Additonal Information (Details)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount
20 
24 
Reconciliation of Net Income/(Loss) to Net Income/(Loss) Available to Common Shareholders (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Net Income (Loss) Attributable to Parent
$ 189 
$ 1,077 
$ 918 
$ 1,602 
Dividends, Preferred Stock, Cash
(9)
(2)
(28)1
(8)
Undistributed Earnings Allocated to Participating Securities
(1)
(9)
(6)
(13)
Net income/(loss) available to common shareholders
179 
1,066 
884 
1,581 
Average basic common shares
533,829,000 
534,506,000 
534,887,000 
533,859,000 
Stock options
1,000,000 
1,000,000 
1,000,000 
1,000,000 
Restricted stock
4,000,000 
3,000,000 
3,000,000 
3,000,000 
Average diluted common shares
538,850,000 
538,699,000 
539,488,000 
537,538,000 
Net income/(loss) per average common share - diluted
$ 0.33 
$ 1.98 
$ 1.64 
$ 2.94 
Earnings Per Share, Basic
$ 0.33 
$ 1.99 
$ 1.65 
$ 2.96 
Retained Earnings [Member]
 
 
 
 
Net Income (Loss) Attributable to Parent
 
 
918 
1,602 
Dividends, Preferred Stock, Cash
 
 
$ (28)1
$ (8)
Income Taxes - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Income Taxes Other Information [Line Items]
 
 
 
 
 
Income Tax Expense (Benefit)
$ 146 
$ (551)
$ (151)
$ (710)
 
Effective Income Tax Rate, Continuing Operations
 
34.00% 
14.00% 
31.00% 
 
Unrecognized Tax Benefits
338 
 
338 
 
137 
Unrecognized Tax Benefits that Would Impact Effective Tax Rate
287 
 
287 
 
 
Deferred Tax Assets, Valuation Allowance
82 
 
82 
 
56 
Subsidiaries [Member]
 
 
 
 
 
Income Taxes Other Information [Line Items]
 
 
 
 
 
Income Tax Expense (Benefit)
$ 343 
 
$ 343 
 
 
Employee Benefit Plans - Additional Information (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Long Term Incentive Deferred Cash Expense
$ 30 
$ 39 
$ 108 
$ 116 
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized
21 
 
21 
 
Share Based Compensation Arrangement By Share Based Payment Award Options Available For Additional Grant
17 
 
17 
 
Fair value of options granted per share
 
 
$ 7.37 
$ 7.83 
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense
5 
6 
17 
21 
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year
 
 
8 
 
Defined Benefit Plan, Contributions by Employer
3 
 
7 
 
Contributed To Postretirement Welfare Plan
1 
 
1 
 
Expected Medicare Subsidy Reimbursement Amount
$ 3 
 
$ 3 
 
Pension Plans, Defined Benefit
 
 
 
 
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Expected Long Term Return on Assets
7.00% 
 
7.00% 
 
Other Postretirement Benefit Plans, Defined Benefit
 
 
 
 
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Expected Long Term Return on Assets
5.00% 
 
5.00% 
 
Restricted Stock [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized
17 
 
17 
 
Share Based Compensation Arrangement By Share Based Payment Award Options Available For Additional Grant
9 
 
9 
 
Employee Benefit Plans Assumptions Used in Estimating the Grant Date Fair Value of Options Using the Black-Scholes Option Pricing Model (Detail)
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Dividend yield
1.28% 
0.91% 
Expected stock price volatility
30.98% 
39.88% 
Risk-free interest rate (weighted average)
1.02% 
1.07% 
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term
6 years 
6 years 
Stock-Based Compensation Expense Recognized in Noninterest Expense (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Stock-based compensation expense:
 
 
 
 
Stock options
$ 1 
$ 2 
$ 5 
$ 9 
Restricted Stock Expense
9 
8 
24 
22 
Restricted stock units
2 
6 
15 
24 
Total stock-based compensation expense
$ 12 
$ 16 
$ 44 
$ 55 
Components of Net Periodic Benefit Cost (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Pension Plans, Defined Benefit
 
 
 
 
Defined Benefit Plan, Interest Cost
$ 28 
$ 30 
$ 84 
$ 90 
Defined Benefit Plan, Expected Return on Plan Assets
(46)
(43)
(139)
(129)
Defined Benefit Plan, Actuarial Gain (Loss)
(6)
(6)
(19)
(18)
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements
0 
(2)
0 
(2)
Net periodic benefit cost
(12)
(5)
(36)
(19)
Other Postretirement Benefit Plans, Defined Benefit
 
 
 
 
Defined Benefit Plan, Interest Cost
1 
2 
4 
5 
Defined Benefit Plan, Expected Return on Plan Assets
(1)
(2)
(4)
(5)
Defined Benefit Plan, Actuarial Gain (Loss)
0 
0 
0 
0 
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements
0 
0 
0 
0 
Net periodic benefit cost
$ 0 
$ 0 
$ 0 
$ 0 
Derivative Financial Instruments - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended 9 Months Ended 9 Months Ended 12 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2012
Sep. 30, 2013
Dec. 31, 2012
Sep. 30, 2013
Cash Flow Hedging
Sep. 30, 2013
written risk participations [Member]
Sep. 30, 2013
Credit and Market Risk
Dec. 31, 2012
Credit and Market Risk
Sep. 30, 2013
Credit and Market Risk
Additional Termination Event [Member]
Sep. 30, 2013
Credit and Market Risk
Additional Termination Event [Member]
Credit Downgrade [Member]
Sep. 30, 2013
Credit and Market Risk
Credit Support Annex
Sep. 30, 2013
Credit and Market Risk
Credit Support Annex
Credit Downgrade [Member]
Sep. 30, 2013
Credit Default Swap
Dec. 31, 2012
Credit Default Swap
Sep. 30, 2013
Credit Derivatives Swap Participation
Dec. 31, 2012
Credit Derivatives Swap Participation
Sep. 30, 2013
Cash Flow Derivatives Hedges [Member]
Sep. 30, 2012
Cash Flow Derivatives Hedges [Member]
Sep. 30, 2013
Cash Flow Derivatives Hedges [Member]
Sep. 30, 2012
Cash Flow Derivatives Hedges [Member]
Sep. 30, 2013
Total Return Swap
Dec. 31, 2012
Total Return Swap
Sep. 30, 2013
Derivatives Sold
Credit Default Swap
Dec. 31, 2012
Derivatives Sold
Credit Default Swap
Derivative asset positions
 
 
 
 
 
 
$ 1,200,000,000 
$ 1,800,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net derivative asset positions to which the Company was exposed to risk of its counterparties, netted by counterparty where formal netting arrangements exist
 
 
 
 
 
 
1,800,000,000 
2,600,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collateral Held by The Company Against Derivative Asset Positions
 
 
54,000,000 
94,000,000 
 
 
600,000,000 
800,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted the fair value of its net derivative asset position for estimates of counterparty credit risk
 
 
 
 
 
 
18,000,000 
29,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Liability, Fair Value, Gross Liability
 
 
5,641,000,000 
7,514,000,000 
 
 
1,000,000,000 
1,300,000,000 
4,000,000 
6,000,000 
1,000,000,000 
 
 
 
 
 
 
 
 
 
32,000,000 
46,000,000 
 
 
Posted collateral
 
 
 
 
 
 
 
 
 
 
934,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Posted collateral
 
 
 
 
 
 
 
 
 
 
 
10,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum exposure
 
 
 
 
 
 
 
 
 
 
 
 
52,000,000 
52,000,000 
30,000,000 
20,000,000 
 
 
 
 
 
 
 
 
Credit Risk Derivatives, at Fair Value, Net
 
 
 
 
 
 
 
 
 
 
 
 
1,000,000 
1,000,000 
1,000,000 
1,000,000 
 
 
 
 
 
 
2,000,000 
1,000,000 
Derivative Asset, Fair Value, Gross Asset
 
 
6,230,000,000 
8,656,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
36,000,000 
51,000,000 
 
 
Collateral held
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
289,000,000 
282,000,000 
 
 
Derivative, Lower Remaining Maturity Range
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 year 
 
 
 
 
 
Weighted Average Term of Credit Risk Derivatives
 
 
 
 
 
7 years 1 month 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Minimum Term of Credit Risk Derivatives
 
 
 
 
 
1 year 
 
 
 
 
 
 
1 year 
1 year 
 
 
 
 
 
 
 
 
 
 
Maximum Term of Credit Risk Derivatives
 
 
 
 
 
13 years 
 
 
 
 
 
 
2 years 
2 years 
 
 
 
 
 
 
 
 
 
 
Derivative, Higher Remaining Maturity Range
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5 years 
 
 
 
 
 
Weighted Average of Maturities of Cash Flow Hedges, upper limit
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2 years 2 months 
 
2 years 2 months 
 
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net
60,000,000 
60,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,000,000 
1,000,000 
1,000,000 
1,000,000 
 
 
 
 
Deferred net gains on derivatives that are recorded in AOCI are expected to be reclassified to net interest income over the next twelve months in connection with the recognition of interest income or interest expense on these hedged items
 
 
 
 
390,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, Notional Amount
 
 
 
 
 
 
 
 
 
 
 
 
$ 52,000,000 
$ 175,000,000 
 
 
 
 
 
 
$ 1,800,000,000 
$ 1,900,000,000 
 
 
Derivative Positions (Detail) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Derivative Asset, Fair Value, Gross Asset
$ 6,230 
$ 8,656 
Derivative liability positions, fair value
5,641 
7,514 
Derivative Asset, Collateral, Obligation to Return Cash, Offset
(4,180)
(5,843)
Derivative Liability, Collateral, Right to Reclaim Cash, Offset
(4,180)
(5,843)
Derivative Asset, Fair Value of Collateral
(521)
(730)
Derivative Liability, Fair Value of Collateral
(966)
(1,259)
Derivative Assets
1,529 1
2,083 1
Derivative Liabilities
495 2
412 2
Derivative Financial Instruments, Assets
 
 
Derivative, Notional Amount
119,753 
135,993 
Derivative Asset, Fair Value, Gross Asset
6,230 
8,656 
Derivative Assets
1,529 3
2,083 3
Derivative Financial Instruments, Assets |
Designated as Hedging Instrument |
Cash Flow Hedging |
Interest Rate Contract [Member] |
Floating Rate Loans |
Trading Account Assets [Member]
 
 
Derivative Asset, Fair Value, Gross Asset
563 4
771 4
Derivative Asset, Notional Amount
17,250 4
17,350 4
Derivative Financial Instruments, Assets |
Designated as Hedging Instrument |
Fair Value Hedging |
Interest Rate Contract [Member] |
Fixed Rate Debt |
Trading Account Assets [Member]
 
 
Derivative Asset, Fair Value, Gross Asset
61 5
61 5
Derivative Asset, Notional Amount
2,000 5
1,000 5
Derivative Financial Instruments, Assets |
Not Designated as Hedging Instrument [Member]
 
 
Derivative Asset, Fair Value, Gross Asset
5,606 
7,824 
Derivative Asset, Notional Amount
100,503 
117,643 
Derivative Financial Instruments, Assets |
Not Designated as Hedging Instrument [Member] |
Interest Rate Contract [Member] |
Fixed Rate Debt |
Trading Account Assets [Member]
 
 
Derivative Asset, Fair Value, Gross Asset
0 6
0 6
Derivative Asset, Notional Amount
0 6
0 6
Derivative Financial Instruments, Assets |
Not Designated as Hedging Instrument [Member] |
Interest Rate Contract [Member] |
Mortgage Servicing Rights [Member] |
Other Assets [Member]
 
 
Derivative Asset, Fair Value, Gross Asset
51 6
150 6
Derivative Asset, Notional Amount
3,240 6
6,185 6
Derivative Financial Instruments, Assets |
Not Designated as Hedging Instrument [Member] |
Interest Rate Contract [Member] |
Loans |
Other Assets [Member]
 
 
Derivative Asset, Fair Value, Gross Asset
23 6 7
6 6 8
Derivative Asset, Notional Amount
2,397 6 7
2,333 6 8
Derivative Financial Instruments, Assets |
Not Designated as Hedging Instrument [Member] |
Interest Rate Contract [Member] |
Trading Activity |
Trading Account Assets [Member]
 
 
Derivative Asset, Fair Value, Gross Asset
3,285 6 9
6,044 10 6
Derivative Asset, Notional Amount
69,235 6 9
81,930 10 6
Derivative Financial Instruments, Assets |
Not Designated as Hedging Instrument [Member] |
Foreign Exchange Contract |
Trading Activity |
Trading Account Assets [Member]
 
 
Derivative Asset, Fair Value, Gross Asset
63 6
66 6
Derivative Asset, Notional Amount
2,589 6
2,451 6
Derivative Financial Instruments, Assets |
Not Designated as Hedging Instrument [Member] |
Foreign Exchange Contract |
Foreign-Denominated Debt and Commercial Loans |
Trading Account Assets [Member]
 
 
Derivative Asset, Fair Value, Gross Asset
0 6
0 6
Derivative Asset, Notional Amount
0 6
0 6
Derivative Financial Instruments, Assets |
Not Designated as Hedging Instrument [Member] |
Credit Risk Contract [Member] |
Loans |
Other Assets [Member]
 
 
Derivative Asset, Fair Value, Gross Asset
0 6
0 6
Derivative Asset, Notional Amount
0 6
0 6
Derivative Financial Instruments, Assets |
Not Designated as Hedging Instrument [Member] |
Credit Risk Contract [Member] |
Trading Activity |
Trading Account Assets [Member]
 
 
Derivative Asset, Fair Value, Gross Asset
39 11 6
55 12 6
Derivative Asset, Notional Amount
1,937 11 6
1,958 12 6
Derivative Financial Instruments, Assets |
Not Designated as Hedging Instrument [Member] |
Equity Contract [Member] |
Trading Activity |
Trading Account Assets [Member]
 
 
Derivative Asset, Fair Value, Gross Asset
2,079 6 9
1,342 10 6
Derivative Asset, Notional Amount
18,722 6 9
15,748 10 6
Derivative Financial Instruments, Assets |
Not Designated as Hedging Instrument [Member] |
Other Contract |
Loans |
Other Assets [Member]
 
 
Derivative Asset, Fair Value, Gross Asset
47 13 6
132 13 6
Derivative Asset, Notional Amount
2,156 13 6
6,783 13 6
Derivative Financial Instruments, Assets |
Not Designated as Hedging Instrument [Member] |
Other Contract |
Trading Activity |
Trading Account Assets [Member]
 
 
Derivative Asset, Fair Value, Gross Asset
19 6
29 6
Derivative Asset, Notional Amount
227 6
255 6
Derivative Financial Instruments, Liabilities [Member]
 
 
Derivative, Notional Amount
117,772 
133,283 
Derivative liability positions, fair value
5,641 
7,514 
Derivative Liabilities
495 3
412 3
Derivative Financial Instruments, Liabilities [Member] |
Designated as Hedging Instrument |
Cash Flow Hedging |
Interest Rate Contract [Member] |
Floating Rate Loans |
Trading Liabilities [Member]
 
 
Derivative Liability, Notional Amount
0 4
0 4
Derivative liability positions, fair value
0 4
0 4
Derivative Financial Instruments, Liabilities [Member] |
Designated as Hedging Instrument |
Fair Value Hedging |
Interest Rate Contract [Member] |
Fixed Rate Debt |
Trading Liabilities [Member]
 
 
Derivative Liability, Notional Amount
900 5
0 5
Derivative liability positions, fair value
10 5
0 5
Derivative Financial Instruments, Liabilities [Member] |
Not Designated as Hedging Instrument [Member]
 
 
Derivative Liability, Notional Amount
116,872 
133,283 
Derivative liability positions, fair value
5,631 
7,514 
Derivative Financial Instruments, Liabilities [Member] |
Not Designated as Hedging Instrument [Member] |
Interest Rate Contract [Member] |
Fixed Rate Debt |
Trading Liabilities [Member]
 
 
Derivative Liability, Notional Amount
60 6
60 6
Derivative liability positions, fair value
8 6
10 6
Derivative Financial Instruments, Liabilities [Member] |
Not Designated as Hedging Instrument [Member] |
Interest Rate Contract [Member] |
Mortgage Servicing Rights [Member] |
Other Liabilities [Member]
 
 
Derivative Liability, Notional Amount
8,916 6
12,643 6
Derivative liability positions, fair value
79 6
33 6
Derivative Financial Instruments, Liabilities [Member] |
Not Designated as Hedging Instrument [Member] |
Interest Rate Contract [Member] |
Loans |
Other Liabilities [Member]
 
 
Derivative Liability, Notional Amount
5,525 6 7
7,076 6 8
Derivative liability positions, fair value
78 6 7
15 6 8
Derivative Financial Instruments, Liabilities [Member] |
Not Designated as Hedging Instrument [Member] |
Interest Rate Contract [Member] |
Trading Activity |
Trading Liabilities [Member]
 
 
Derivative Liability, Notional Amount
72,926 6 9
86,037 10 6
Derivative liability positions, fair value
3,102 6 9
5,777 10 6
Derivative Financial Instruments, Liabilities [Member] |
Not Designated as Hedging Instrument [Member] |
Foreign Exchange Contract |
Trading Activity |
Trading Liabilities [Member]
 
 
Derivative Liability, Notional Amount
2,537 6
2,326 6
Derivative liability positions, fair value
61 6
63 6
Derivative Financial Instruments, Liabilities [Member] |
Not Designated as Hedging Instrument [Member] |
Foreign Exchange Contract |
Foreign-Denominated Debt and Commercial Loans |
Trading Liabilities [Member]
 
 
Derivative Liability, Notional Amount
34 6
34 6
Derivative liability positions, fair value
0 6
0 6
Derivative Financial Instruments, Liabilities [Member] |
Not Designated as Hedging Instrument [Member] |
Credit Risk Contract [Member] |
Loans |
Other Liabilities [Member]
 
 
Derivative Liability, Notional Amount
490 6
445 6
Derivative liability positions, fair value
6 6
8 6
Derivative Financial Instruments, Liabilities [Member] |
Not Designated as Hedging Instrument [Member] |
Credit Risk Contract [Member] |
Trading Activity |
Trading Liabilities [Member]
 
 
Derivative Liability, Notional Amount
1,941 11 6
2,081 12 6
Derivative liability positions, fair value
33 11 6
49 12 6
Derivative Financial Instruments, Liabilities [Member] |
Not Designated as Hedging Instrument [Member] |
Equity Contract [Member] |
Trading Activity |
Trading Liabilities [Member]
 
 
Derivative Liability, Notional Amount
24,010 6 9
22,184 10 6
Derivative liability positions, fair value
2,242 6 9
1,529 10 6
Derivative Financial Instruments, Liabilities [Member] |
Not Designated as Hedging Instrument [Member] |
Other Contract |
Loans |
Other Liabilities [Member]
 
 
Derivative Liability, Notional Amount
212 13 6
142 13 6
Derivative liability positions, fair value
3 13 6
1 13 6
Derivative Financial Instruments, Liabilities [Member] |
Not Designated as Hedging Instrument [Member] |
Other Contract |
Trading Activity |
Trading Liabilities [Member]
 
 
Derivative Liability, Notional Amount
221 6
255 6
Derivative liability positions, fair value
$ 19 6
$ 29 6
Derivative Positions (Parenthetical) (Detail) (Not Designated as Hedging Instrument [Member], USD $)
Share data in Millions, unless otherwise specified
1 Months Ended
Sep. 30, 2013
Trading Activity
Dec. 31, 2012
Trading Activity
Sep. 30, 2013
Derivative Financial Instruments, Assets
Trading Activity
Dec. 31, 2012
Derivative Financial Instruments, Assets
Trading Activity
Sep. 30, 2013
Derivative Financial Instruments, Liabilities [Member]
Dec. 31, 2012
Derivative Financial Instruments, Liabilities [Member]
Sep. 30, 2013
Derivative Financial Instruments, Liabilities [Member]
Future
Dec. 31, 2012
Derivative Financial Instruments, Liabilities [Member]
Future
May 31, 2009
Derivative Financial Instruments, Liabilities [Member]
Visa Interest [Member]
Notional Amount Of Interest Rate Future Derivatives
 
 
$ 16,100,000,000 
$ 16,200,000,000 
 
 
$ 900,000,000 
$ 1,700,000,000 
 
Notional related to equity futures
 
 
200,000,000 
800,000,000 
 
 
 
 
 
Asset amount notional from purchased and written interest rate swap risk participation agreements
4,000,000 
3,000,000 
 
 
 
 
 
 
 
Notional Amount Liability Purchased And Written Interest Rate Swap Risk Participation Agreements
3,000,000 
3,000,000 
 
 
 
 
 
 
 
Number Of Shares Sold To Selected Financial Institutions
 
 
 
 
 
 
 
 
3.2 
Notional Amount Derivative Liability Sale Of Shares
 
 
 
 
$ 134,000,000 
$ 134,000,000 
 
 
 
Impacts of Derivative Financial Instruments on the Consolidated Statements of Income/(Loss) and the Consolidated Statements of Shareholders' Equity (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Interest Income, Interest and Fees on Loans
 
 
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
$ (101)
$ (118)
$ (315)
$ (390)
Cash Flow Hedging
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net
60 
70 
15 
76 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
80 
(281)
246 
(115)
Cash Flow Hedging |
Equity Contract [Member] |
Available-for-sale Securities [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net
 
(10)1
 
(171)1
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
 
(365)1
 
(365)1
Cash Flow Hedging |
Interest Income, Interest and Fees on Loans |
Interest Rate Contract [Member] |
forecasted debt [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net
0 
 
(2)
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
0 
 
0 
 
Cash Flow Hedging |
Interest Income, Interest and Fees on Loans |
Interest Rate Contract [Member] |
Floating Rate Loans
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net
60 2
80 3
17 2
247 3
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
80 2
84 3
246 2
250 3
Fair Value Hedging
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
 
3 4
 
11 4
Amount of gain on related Hedged Items recognized in Income
 
(3)4
 
(11)4
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
 
0 
 
0 
Fair Value Hedging |
Trading Account Profits And Commissions [Member] |
Interest Rate Contract [Member] |
Available-for-sale Securities [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
 
0 
 
1 4
Amount of gain on related Hedged Items recognized in Income
 
0 
 
(1)4
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
 
0 
 
0 
Fair Value Hedging |
Trading Account Profits And Commissions [Member] |
Interest Rate Contract [Member] |
Fixed Rate Debt
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
4 4
3 4
(19)4
10 4
Amount of gain on related Hedged Items recognized in Income
(6)4
(3)4
18 4
(10)4
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
(2)4
0 
(1)4
0 
Not Designated as Hedging Instrument [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
14 
294 
164 
981 
Not Designated as Hedging Instrument [Member] |
Trading Account Profits And Commissions [Member] |
Interest Rate Contract [Member] |
Fixed Rate Debt
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
(1)
(1)
1 
(2)
Not Designated as Hedging Instrument [Member] |
Trading Account Profits And Commissions [Member] |
Interest Rate Contract [Member] |
Trading Activity
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
20 
17 
46 
71 
Not Designated as Hedging Instrument [Member] |
Trading Account Profits And Commissions [Member] |
Foreign Exchange Contract |
Trading Activity
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
(9)
(2)
17 
13 
Not Designated as Hedging Instrument [Member] |
Trading Account Profits And Commissions [Member] |
Foreign Exchange Contract |
Foreign-Denominated Debt and Commercial Loans
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
2 
0 
1 
129 
Not Designated as Hedging Instrument [Member] |
Trading Account Profits And Commissions [Member] |
Credit Risk Contract [Member] |
Loans
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
 
 
 
(3)
Not Designated as Hedging Instrument [Member] |
Trading Account Profits And Commissions [Member] |
Credit Risk Contract [Member] |
Trading Activity
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
6 
6 
16 
18 
Not Designated as Hedging Instrument [Member] |
Trading Account Profits And Commissions [Member] |
Equity Contract [Member] |
Trading Activity
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
1 
(3)
(14)
10 
Not Designated as Hedging Instrument [Member] |
Mortgage Servicing Income [Member] |
Interest Rate Contract [Member] |
Mortgage Servicing Rights [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
(18)
101 
(232)
297 
Not Designated as Hedging Instrument [Member] |
Mortgage Production Income [Member] |
Interest Rate Contract [Member] |
Loans
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
(33)
(153)
258 
(323)
Not Designated as Hedging Instrument [Member] |
Mortgage Production Income [Member] |
Other Contract |
Loans
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
47 
332 
74 
774 
Not Designated as Hedging Instrument [Member] |
Other Income [Member] |
Credit Risk Contract [Member] |
Loans
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
$ (1)
$ (3)
$ (3)
$ (6)5
Impacts of Derivative Financial Instruments on the Consolidated Statements of Income/(Loss) and the Consolidated Statements of Shareholders' Equity (Parenthetical) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net
 
$ 60 
 
$ 60 
Interest Income (Expense), Net [Member]
 
 
 
 
Reclassified in pre-tax gains from AOCI into net interest income
21 
34 
69 
140 
Not Designated as Hedging Instrument [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
14 
294 
164 
981 
Loans |
Credit Risk Contract [Member] |
Not Designated as Hedging Instrument [Member] |
Trading Account Profits And Commissions [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) Recognized in Income, Net
 
 
 
$ (3)
Derivative Financial Instruments Netting of Financial Instruments - Derivatives (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Derivative [Line Items]
 
 
Derivative Asset, Fair Value, Gross Asset
$ 6,230 
$ 8,656 
Derivative Asset, Fair Value, Amount Offset Against Collateral
4,701 
6,573 
Derivative Assets
1,529 1
2,083 1
Collateral Held by The Company Against Derivative Asset Positions
54 
94 
Derivative Asset, Fair Value, Amount Not Offset Against Collateral
1,475 
1,989 
Derivative Liability, Fair Value, Gross Liability
5,641 
7,514 
Derivative Liability, Fair Value, Amount Offset Against Collateral
5,146 
7,102 
Derivative Liabilities
495 2
412 2
Financial Instruments, Owned and Pledged as Collateral, at Fair Value
116 
37 
Derivative Liability, Fair Value, Amount Not Offset Against Collateral
379 
375 
Derivatives Subject to Master Netting Arrangement or Similar Arrangement [Member]
 
 
Derivative [Line Items]
 
 
Derivative Asset, Fair Value, Gross Asset
5,478 
8,041 
Derivative Asset, Fair Value, Amount Offset Against Collateral
4,282 
6,273 
Derivative Assets
1,196 
1,768 
Collateral Held by The Company Against Derivative Asset Positions
54 
94 
Derivative Asset, Fair Value, Amount Not Offset Against Collateral
1,142 
1,674 
Derivative Liability, Fair Value, Gross Liability
5,051 
7,051 
Derivative Liability, Fair Value, Amount Offset Against Collateral
4,727 
6,802 
Derivative Liabilities
324 
249 
Financial Instruments, Owned and Pledged as Collateral, at Fair Value
114 
37 
Derivative Liability, Fair Value, Amount Not Offset Against Collateral
210 
212 
Derivatives Not Subject to Master Netting Arrangement or Similar Arrangement [Member] [Member]
 
 
Derivative [Line Items]
 
 
Derivative Asset, Fair Value, Gross Asset
47 
132 
Derivative Asset, Fair Value, Amount Offset Against Collateral
0 
0 
Derivative Assets
47 
132 
Collateral Held by The Company Against Derivative Asset Positions
0 
0 
Derivative Asset, Fair Value, Amount Not Offset Against Collateral
47 
132 
Derivative Liability, Fair Value, Gross Liability
169 
163 
Derivative Liability, Fair Value, Amount Offset Against Collateral
0 
0 
Derivative Liabilities
169 
163 
Financial Instruments, Owned and Pledged as Collateral, at Fair Value
0 
0 
Derivative Liability, Fair Value, Amount Not Offset Against Collateral
169 
163 
Exchange Traded/Cleared [Member]
 
 
Derivative [Line Items]
 
 
Derivative Asset, Fair Value, Gross Asset
705 
483 
Derivative Asset, Fair Value, Amount Offset Against Collateral
419 
300 
Derivative Assets
286 
183 
Collateral Held by The Company Against Derivative Asset Positions
0 
0 
Derivative Asset, Fair Value, Amount Not Offset Against Collateral
286 
183 
Derivative Liability, Fair Value, Gross Liability
421 
300 
Derivative Liability, Fair Value, Amount Offset Against Collateral
419 
300 
Derivative Liabilities
2 
0 
Financial Instruments, Owned and Pledged as Collateral, at Fair Value
2 
0 
Derivative Liability, Fair Value, Amount Not Offset Against Collateral
$ 0 
$ 0 
Derivative Financial Instruments Netting of Financial Instruments - Derivatives (parenthetical) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Derivative [Line Items]
 
 
Derivative Assets
$ 1,529 1
$ 2,083 1
Derivative Asset, Fair Value of Collateral
(521)
(730)
Derivative Liabilities
495 2
412 2
Derivative Liability, Fair Value of Collateral
(966)
(1,259)
Other Liabilities [Member]
 
 
Derivative [Line Items]
 
 
Derivative Liabilities
49 3 4
15 3 4
Derivative Liability, Fair Value of Collateral
(32)3 4
 
Trading Liabilities [Member]
 
 
Derivative [Line Items]
 
 
Derivative Liabilities
444 
397 
Derivative Liability, Fair Value of Collateral
(934)
(1,300)
Trading Account Assets [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
1,500 
1,900 
Derivative Asset, Fair Value of Collateral
(517)
(730)
Other Assets [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
58 3 4
178 3 4
Derivative Asset, Fair Value of Collateral
$ (4)
 
Reinsurance Arrangements and Guarantees - Additional Information (Detail) (USD $)
Share data in Millions, unless otherwise specified
3 Months Ended 9 Months Ended 12 Months Ended 105 Months Ended 105 Months Ended 9 Months Ended 12 Months Ended 105 Months Ended 3 Months Ended 9 Months Ended 9 Months Ended 1 Months Ended
Sep. 30, 2013
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Sep. 30, 2013
Jun. 30, 2013
Jun. 30, 2012
Sep. 30, 2013
Ginnie Mae
Sep. 30, 2013
Non Government Sponsored Agency [Member]
Dec. 31, 2012
Non Government Sponsored Agency [Member]
Dec. 31, 2011
Non Government Sponsored Agency [Member]
Dec. 31, 2010
Non Government Sponsored Agency [Member]
Sep. 30, 2013
Non Government Sponsored Agency [Member]
Sep. 30, 2013
US Government Sponsored Agency [Member]
Dec. 31, 2012
US Government Sponsored Agency [Member]
Sep. 30, 2013
Mortgage Reinsurance Contracts
Sep. 30, 2012
Mortgage Reinsurance Contracts
Sep. 30, 2013
Mortgage Reinsurance Contracts
Sep. 30, 2012
Mortgage Reinsurance Contracts
Dec. 31, 2012
Mortgage Reinsurance Contracts
Sep. 30, 2013
Mortgage Reinsurance Contracts
Upper Limit
Dec. 31, 2012
Mortgage Reinsurance Contracts
Upper Limit
Sep. 30, 2013
Standby Letters of Credit
Dec. 31, 2012
Standby Letters of Credit
Sep. 30, 2013
Mortgage Servicing Rights [Member]
Dec. 31, 2012
Mortgage Servicing Rights [Member]
Sep. 30, 2013
Visa Interest [Member]
Sep. 30, 2012
Visa Interest [Member]
May 31, 2009
Visa Interest [Member]
Sep. 30, 2013
Tax Credit Sales [Member]
Dec. 31, 2012
Tax Credit Sales [Member]
May 31, 2009
Not Designated as Hedging Instrument [Member]
Derivative Financial Instruments, Liabilities [Member]
Visa Interest [Member]
Sep. 30, 2013
Loans Held For Investment [Member]
Dec. 31, 2012
Loans Held For Investment [Member]
Sep. 30, 2013
Loans Held For Investment [Member]
Nonperforming Financing Receivable [Member]
Dec. 31, 2012
Loans Held For Investment [Member]
Nonperforming Financing Receivable [Member]
Sep. 30, 2013
Residential Mortgage, Loans Held For Sale [Member]
Dec. 31, 2012
Residential Mortgage, Loans Held For Sale [Member]
Sep. 30, 2013
Residential Mortgage, Loans Held For Sale [Member]
Nonperforming Financing Receivable [Member]
Dec. 31, 2012
Residential Mortgage, Loans Held For Sale [Member]
Nonperforming Financing Receivable [Member]
Mortgage loans were covered by such mortgage reinsurance contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 100,000,000 
 
$ 100,000,000 
 
$ 5,200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total loss exposure ceded to the Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5,000,000 
 
5,000,000 
 
179,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum amount of loss exposure based on funds held in each seperate trust account, including net premiums due to the trust accounts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,000,000 
 
4,000,000 
 
6,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Valuation Allowances and Reserves, Balance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,000,000 
 
1,000,000 
 
3,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future reported losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,000,000 
3,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future cash losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premium income, mortgage reinsurance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,000,000 
2,000,000 
1,000,000 
10,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision For Losses, Mortgage Reinsurance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,000,000 
2,000,000 
1,000,000 
11,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum potential amount obligation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,500,000,000 
4,000,000,000 
 
 
 
 
 
37,000,000 
 
 
 
 
 
 
 
 
 
 
Loans sold from January 1, 2005 to September 30, 2011
 
 
 
 
 
 
 
292,000,000,000 
 
 
34,000,000,000 
 
 
 
 
30,300,000,000 
227,700,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans Sold Repurchased Request Amount
 
1,400,000,000 
 
1,700,000,000 
1,700,000,000 
1,100,000,000 
 
8,100,000,000 
 
 
 
17,000,000 
22,000,000 
50,000,000 
55,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unpaid principal balance of loans related to unresolved requests previously received from investors
376,000,000 
376,000,000 
 
655,000,000 
 
 
 
376,000,000 
 
 
 
4,000,000 
16,000,000 
 
 
4,000,000 
372,000,000 
639,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage Repurchase Reserve, Provision for Mortgage Loan Repurchase Losses
63,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reserve For Mortgage Loan Repurchase Losses
281,000,000 
281,000,000 
694,000,000 
632,000,000 
320,000,000 
 
 
281,000,000 
363,000,000 
434,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repurchased or otherwise settled mortgages
 
800,000,000 
558,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repurchased mortgage loans
375,000,000 
375,000,000 
 
240,000,000 
 
 
 
375,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
321,000,000 
209,000,000 
49,000,000 
70,000,000 
54,000,000 
31,000,000 
54,000,000 
31,000,000 
Loss Contingency Accrual, at Carrying Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5,000,000 
12,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Combination, Contingent Consideration, Liability
26,000,000 
26,000,000 
 
30,000,000 
 
 
 
26,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Third Party Escrow, Gross Funded Since Inception
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8,500,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Third Party Escrow, Amount Paid From Escrow
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,100,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Third Party litigation claims paid from escrow
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,400,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number Of Shares Sold To Selected Financial Institutions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2 
 
 
 
 
 
 
 
 
Shares of Class B Visa Inc Common Stock Sold to Another FinancialIinstitution, Value
 
 
 
 
 
 
112,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain (Loss) on Sale of Other Investments
 
 
 
 
 
 
112,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock conversion rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.4206 
 
0.6296 
 
 
 
 
 
 
 
 
 
 
 
Payments to derivative counterparty
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
25,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Visa Share of Claims in Settlement Agreement Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4,400,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tax Credits To Be Delivered
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,000,000 
$ 3,000,000 
 
 
 
 
 
 
 
 
 
Outstanding Balance of Loans Sold by Vintage and Type of Buyer (Detail) (USD $)
In Billions, unless otherwise specified
Sep. 30, 2013
Outstanding balance remaining of loans sold to outside investors
$ 105.8 
US Government Sponsored Agency [Member]
 
Outstanding balance remaining of loans sold to outside investors
77.0 1
Ginnie Mae
 
Outstanding balance remaining of loans sold to outside investors
17.4 1
Non Government Sponsored Agency [Member]
 
Outstanding balance remaining of loans sold to outside investors
11.4 
Vintage 2005
 
Outstanding balance remaining of loans sold to outside investors
5.8 
Vintage 2005 |
US Government Sponsored Agency [Member]
 
Outstanding balance remaining of loans sold to outside investors
2.1 1
Vintage 2005 |
Ginnie Mae
 
Outstanding balance remaining of loans sold to outside investors
0.4 1
Vintage 2005 |
Non Government Sponsored Agency [Member]
 
Outstanding balance remaining of loans sold to outside investors
3.3 
Vintage 2006
 
Outstanding balance remaining of loans sold to outside investors
7.5 
Vintage 2006 |
US Government Sponsored Agency [Member]
 
Outstanding balance remaining of loans sold to outside investors
2.3 1
Vintage 2006 |
Ginnie Mae
 
Outstanding balance remaining of loans sold to outside investors
0.3 1
Vintage 2006 |
Non Government Sponsored Agency [Member]
 
Outstanding balance remaining of loans sold to outside investors
4.9 
Vintage 2007
 
Outstanding balance remaining of loans sold to outside investors
8.0 
Vintage 2007 |
US Government Sponsored Agency [Member]
 
Outstanding balance remaining of loans sold to outside investors
4.5 1
Vintage 2007 |
Ginnie Mae
 
Outstanding balance remaining of loans sold to outside investors
0.3 1
Vintage 2007 |
Non Government Sponsored Agency [Member]
 
Outstanding balance remaining of loans sold to outside investors
3.2 
Vintage 2008
 
Outstanding balance remaining of loans sold to outside investors
5.3 
Vintage 2008 |
US Government Sponsored Agency [Member]
 
Outstanding balance remaining of loans sold to outside investors
4.0 1
Vintage 2008 |
Ginnie Mae
 
Outstanding balance remaining of loans sold to outside investors
1.3 1
Vintage 2008 |
Non Government Sponsored Agency [Member]
 
Outstanding balance remaining of loans sold to outside investors
0 
Vintage 2009
 
Outstanding balance remaining of loans sold to outside investors
14.8 
Vintage 2009 |
US Government Sponsored Agency [Member]
 
Outstanding balance remaining of loans sold to outside investors
11.5 1
Vintage 2009 |
Ginnie Mae
 
Outstanding balance remaining of loans sold to outside investors
3.3 1
Vintage 2009 |
Non Government Sponsored Agency [Member]
 
Outstanding balance remaining of loans sold to outside investors
0 
Vintage 2010
 
Outstanding balance remaining of loans sold to outside investors
10.3 
Vintage 2010 |
US Government Sponsored Agency [Member]
 
Outstanding balance remaining of loans sold to outside investors
7.7 1
Vintage 2010 |
Ginnie Mae
 
Outstanding balance remaining of loans sold to outside investors
2.6 1
Vintage 2010 |
Non Government Sponsored Agency [Member]
 
Outstanding balance remaining of loans sold to outside investors
0 
Vintage 2011
 
Outstanding balance remaining of loans sold to outside investors
10.6 
Vintage 2011 |
US Government Sponsored Agency [Member]
 
Outstanding balance remaining of loans sold to outside investors
8.5 1
Vintage 2011 |
Ginnie Mae
 
Outstanding balance remaining of loans sold to outside investors
2.1 1
Vintage 2011 |
Non Government Sponsored Agency [Member]
 
Outstanding balance remaining of loans sold to outside investors
0 
Vintage 2012
 
Outstanding balance remaining of loans sold to outside investors
22.0 
Vintage 2012 |
US Government Sponsored Agency [Member]
 
Outstanding balance remaining of loans sold to outside investors
18.0 1
Vintage 2012 |
Ginnie Mae
 
Outstanding balance remaining of loans sold to outside investors
4.0 1
Vintage 2012 |
Non Government Sponsored Agency [Member]
 
Outstanding balance remaining of loans sold to outside investors
0 
Vintage 2013
 
Outstanding balance remaining of loans sold to outside investors
21.5 
Vintage 2013 |
US Government Sponsored Agency [Member]
 
Outstanding balance remaining of loans sold to outside investors
18.4 1
Vintage 2013 |
Ginnie Mae
 
Outstanding balance remaining of loans sold to outside investors
3.1 1
Vintage 2013 |
Non Government Sponsored Agency [Member]
 
Outstanding balance remaining of loans sold to outside investors
$ 0 
Mortgage Loan Repurchase Losses (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Reserve for mortgage loan repurchase losses
 
 
 
 
Balance at beginning of period
$ 363 
$ 434 
$ 632 
$ 320 
Repurchase provision
73 
371 
102 
701 
Charge-offs
(155)
(111)
(453)
(327)
Balance at end of period
$ 281 
$ 694 
$ 281 
$ 694 
Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
$ 5,731 
$ 6,049 
Derivative Assets
1,529 1
2,083 1
Available-for-sale Securities
22,626 
21,953 
Loans Held-for-sale, Fair Value Disclosure
2,240 2
3,243 2
Loans Receivable, Fair Value Disclosure
316 3
379 3
Servicing Asset at Fair Value, Amount
1,248 
899 
Trading Liabilities, Fair Value Disclosure
1,264 
1,161 
Derivative Liabilities
495 4
412 4
Deposits, Fair Value Disclosure
784 
832 
Long-term Debt, Fair Value
1,593 5
1,622 5
Other Liabilities, Fair Value Disclosure
77 6 7 8
46 7 8 9
Netting [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
(4,638)10 6
(6,463)11 9
Other Assets, Fair Value Disclosure
(63)10 6 7
(110)11 7 9
Trading Liabilities, Fair Value Disclosure
(5,031)10 6
(7,061)11 9
Other Liabilities, Fair Value Disclosure
(115)10 6 7 8
(41)11 7 8 9
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale Securities
22,626 
21,953 
Loans Held-for-sale, Fair Value Disclosure
2,240 
3,243 
Loans Receivable, Fair Value Disclosure
316 
379 
Servicing Asset at Fair Value, Amount
1,248 
899 
Deposits, Fair Value Disclosure
784 
832 
Long-term Debt, Fair Value
1,593 
1,622 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
1,008 
694 
Available-for-sale Securities
878 
291 
Loans Held-for-sale, Fair Value Disclosure
0 
0 
Loans Receivable, Fair Value Disclosure
0 
0 
Servicing Asset at Fair Value, Amount
0 
0 
Other Assets, Fair Value Disclosure
0 
2 7 9
Trading Liabilities, Fair Value Disclosure
1,010 
891 
Deposits, Fair Value Disclosure
0 
0 
Long-term Debt, Fair Value
0 
0 
Other Liabilities, Fair Value Disclosure
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
9,292 
11,760 
Available-for-sale Securities
20,853 
20,748 
Loans Held-for-sale, Fair Value Disclosure
2,236 
3,235 
Loans Receivable, Fair Value Disclosure
0 
0 
Servicing Asset at Fair Value, Amount
0 
0 
Other Assets, Fair Value Disclosure
74 6 7
154 7 9
Trading Liabilities, Fair Value Disclosure
5,285 
7,331 
Deposits, Fair Value Disclosure
784 
832 
Long-term Debt, Fair Value
1,593 
1,622 
Other Liabilities, Fair Value Disclosure
164 6 7 8
56 7 8 9
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
69 
58 
Available-for-sale Securities
895 
914 
Loans Held-for-sale, Fair Value Disclosure
4 
8 
Loans Receivable, Fair Value Disclosure
316 
379 
Servicing Asset at Fair Value, Amount
1,248 
899 
Other Assets, Fair Value Disclosure
47 6 7
132 7 9
Trading Liabilities, Fair Value Disclosure
0 
0 
Deposits, Fair Value Disclosure
0 
0 
Long-term Debt, Fair Value
0 
0 
Other Liabilities, Fair Value Disclosure
28 6 7 8
31 7 8 9
Trading Loans [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
2,183 
2,319 
Trading Loans [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
0 
0 
Trading Loans [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
2,183 
2,319 
Trading Loans [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
0 
0 
Equity Securities |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
104 
100 
Available-for-sale Securities
776 12
702 13
Trading Liabilities, Fair Value Disclosure
5 
9 
Equity Securities |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
104 
100 
Available-for-sale Securities
107 12
69 13
Trading Liabilities, Fair Value Disclosure
5 
9 
Equity Securities |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
0 
0 
Available-for-sale Securities
0 
0 
Trading Liabilities, Fair Value Disclosure
0 
0 
Equity Securities |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Investments, Fair Value Disclosure
1 
2 
Trading assets
0 
0 
Available-for-sale Securities
669 12
633 13
Trading Liabilities, Fair Value Disclosure
0 
0 
Derivative Financial Instruments, Assets |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
705 6
483 9
Derivative Financial Instruments, Assets |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
5,404 6
7,885 9
Derivative Financial Instruments, Assets |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
0 
0 
Commercial Paper [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
71 
28 
Commercial Paper [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
0 
0 
Commercial Paper [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
71 
28 
Commercial Paper [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
0 
0 
Other Debt Obligations [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
601 
567 
Available-for-sale Securities
43 
46 
Trading Liabilities, Fair Value Disclosure
230 
173 
Other Debt Obligations [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
0 
0 
Available-for-sale Securities
0 
0 
Trading Liabilities, Fair Value Disclosure
0 
0 
Other Debt Obligations [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
601 
566 
Available-for-sale Securities
38 
41 
Trading Liabilities, Fair Value Disclosure
230 
173 
Other Debt Obligations [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
0 
1 
Available-for-sale Securities
5 
5 
Trading Liabilities, Fair Value Disclosure
0 
0 
Asset-backed Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
6 
36 
Available-for-sale Securities
96 
216 
Asset-backed Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
0 
0 
Available-for-sale Securities
0 
0 
Asset-backed Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
0 
31 
Available-for-sale Securities
75 
195 
Asset-backed Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
6 
5 
Available-for-sale Securities
21 
21 
Collateralized Debt Obligations [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
65 
55 
Collateralized Debt Obligations [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
0 
0 
Collateralized Debt Obligations [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
2 
3 
Collateralized Debt Obligations [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
63 
52 
Mortgage-backed Securities, Issued by Private Enterprises [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale Securities
166 
209 
Mortgage-backed Securities, Issued by Private Enterprises [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale Securities
0 
0 
Mortgage-backed Securities, Issued by Private Enterprises [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale Securities
0 
0 
Mortgage-backed Securities, Issued by Private Enterprises [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-for-sale Securities
166 
209 
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
332 
432 
Available-for-sale Securities
18,358 
18,169 
Trading Liabilities, Fair Value Disclosure
1 
 
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
0 
0 
Available-for-sale Securities
0 
0 
Trading Liabilities, Fair Value Disclosure
0 
 
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
332 
432 
Available-for-sale Securities
18,358 
18,169 
Trading Liabilities, Fair Value Disclosure
1 
 
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
0 
0 
Available-for-sale Securities
0 
0 
Trading Liabilities, Fair Value Disclosure
0 
 
US States and Political Subdivisions Debt Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
52 
34 
Available-for-sale Securities
245 
320 
US States and Political Subdivisions Debt Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
0 
0 
Available-for-sale Securities
0 
0 
US States and Political Subdivisions Debt Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
52 
34 
Available-for-sale Securities
211 
274 
US States and Political Subdivisions Debt Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
0 
0 
Available-for-sale Securities
34 
46 
US Government Agencies Debt Securities |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
647 
462 
Available-for-sale Securities
2,171 
2,069 
US Government Agencies Debt Securities |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
0 
0 
Available-for-sale Securities
0 
0 
US Government Agencies Debt Securities |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
647 
462 
Available-for-sale Securities
2,171 
2,069 
US Government Agencies Debt Securities |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
0 
0 
Available-for-sale Securities
0 
0 
US Treasury Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
199 
111 
Available-for-sale Securities
771 
222 
Trading Liabilities, Fair Value Disclosure
584 
582 
US Treasury Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
199 
111 
Available-for-sale Securities
771 
222 
Trading Liabilities, Fair Value Disclosure
584 
582 
US Treasury Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
0 
0 
Available-for-sale Securities
0 
0 
Trading Liabilities, Fair Value Disclosure
0 
0 
US Treasury Securities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading assets
0 
0 
Available-for-sale Securities
0 
0 
Trading Liabilities, Fair Value Disclosure
0 
0 
Derivative Financial Instruments, Liabilities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading Liabilities, Fair Value Disclosure
421 6
300 9
Derivative Financial Instruments, Liabilities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading Liabilities, Fair Value Disclosure
5,054 6
7,158 9
Derivative Financial Instruments, Liabilities [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Trading Liabilities, Fair Value Disclosure
0 
0 
Corporate and Other [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Loans Held-for-sale, Fair Value Disclosure
312 
319 
Corporate and Other [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Loans Held-for-sale, Fair Value Disclosure
0 
0 
Corporate and Other [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Loans Held-for-sale, Fair Value Disclosure
312 
319 
Corporate and Other [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Loans Held-for-sale, Fair Value Disclosure
0 
0 
Residential Mortgage, Loans Held For Sale [Member] |
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Loans Held-for-sale, Fair Value Disclosure
1,928 
2,924 
Residential Mortgage, Loans Held For Sale [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Loans Held-for-sale, Fair Value Disclosure
0 
0 
Residential Mortgage, Loans Held For Sale [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Loans Held-for-sale, Fair Value Disclosure
1,924 
2,916 
Residential Mortgage, Loans Held For Sale [Member] |
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Loans Held-for-sale, Fair Value Disclosure
4 
8 
Other Trading [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Assets
1,471 6
1,905 9
Derivative Liabilities
444 6
397 9
Other Assets [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Assets
58 6 7
178 6 7
Derivative Financial Instruments, Assets
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Assets
$ 1,529 14
$ 2,083 14
[11] December 31, 2012 Fair Value Measurements (Dollars in millions)Level 1 Level 2 Level 3 Netting Adjustments 1 Assets/Liabilitiesat Fair ValueAssets Trading assets: U.S. Treasury securities$111 $— $— $— $111Federal agency securities— 462 — — 462U.S. states and political subdivisions— 34 — — 34MBS - agency— 432 — — 432CDO/CLO securities— 3 52 — 55ABS— 31 5 — 36Corporate and other debt securities— 566 1 — 567CP— 28 — — 28Equity securities100 — — — 100Derivative contracts 2483 7,885 — (6,463) 1,905Trading loans— 2,319 — — 2,319Total trading assets694 11,760 58 (6,463) 6,049Securities AFS: U.S. Treasury securities222 — — — 222Federal agency securities— 2,069 — — 2,069U.S. states and political subdivisions— 274 46 — 320MBS - agency— 18,169 — — 18,169MBS - private— — 209 — 209ABS— 195 21 — 216Corporate and other debt securities— 41 5 — 46 Other equity securities 369 — 633 — 702Total securities AFS291 20,748 914 — 21,953LHFS: Residential loans— 2,916 8 — 2,924Corporate and other loans— 319 — — 319Total LHFS— 3,235 8 — 3,243LHFI— — 379 — 379MSRs— — 899 — 899Other assets 2,42 154 132 (110) 178Liabilities Trading liabilities: U.S. Treasury securities582 — — — 582Corporate and other debt securities— 173 — — 173Equity securities9 — — — 9Derivative contracts 2300 7,158 — (7,061) 397Total trading liabilities891 7,331 — (7,061) 1,161Brokered time deposits— 832 — — 832Long-term debt— 1,622 — — 1,622Other liabilities 2,4,5— 56 31 (41) 461 Amounts represent offsetting cash collateral received from and paid to the same derivative counterparties and the impact of netting derivative assets and derivative liabilities when a legally enforceable master netting agreement or similar agreement exists.2
Assets and Liabilities Measured at Fair Value on a Recurring Basis (Parenthetical) (Detail) (Fair Value, Measurements, Recurring [Member], USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Equity Securities |
Fair Value, Inputs, Level 3 [Member]
 
 
Investments, Fair Value Disclosure
$ 1 
$ 2 
Equity Funds [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Investments, Fair Value Disclosure
107 
69 
Federal Reserve Bank Stock [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Investments, Fair Value Disclosure
402 
402 
Investment in Federal Home Loan Bank Stock [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Investments, Fair Value Disclosure
$ 266 
$ 229 
Fair Value Option Elected, Difference Between the Aggregate Fair Value and the Aggregate Unpaid Principal Balance (Detail) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Trading assets
$ 5,731 
$ 6,049 
Loans Held-for-sale, Fair Value Disclosure
2,240 1
3,243 1
Deposits, Fair Value Disclosure
784 
832 
Loans Receivable, Fair Value Disclosure
316 2
379 2
Long-term Debt, Fair Value
1,593 3
1,622 3
Aggregate Fair Value Under Fair Value Option
 
 
Trading assets
2,183 
2,319 
Loans Held-for-sale, Fair Value Disclosure
2,229 
3,237 
Deposits, Fair Value Disclosure
784 
832 
Loans Receivable, Fair Value Disclosure
309 
360 
Long-term Debt, Fair Value
1,593 
1,622 
Aggregate Unpaid Principal Balance Under Fair Value Option
 
 
Trading assets
2,159 
2,285 
Loans Held-for-sale, Fair Value Disclosure
2,183 
3,109 
Deposits, Fair Value Disclosure
779 
825 
Loans Receivable, Fair Value Disclosure
328 
371 
Long-term Debt, Fair Value
1,460 
1,462 
Fair Value Over/(Under) Unpaid Principal
 
 
Trading assets
24 
34 
Loans Held-for-sale, Fair Value Disclosure
46 
128 
Deposits, Fair Value Disclosure
5 
7 
Loans Receivable, Fair Value Disclosure
(19)
(11)
Long-term Debt, Fair Value
133 
160 
Loans Held-for-Sale |
Aggregate Fair Value Under Fair Value Option
 
 
Past due loans of 90 days or more
1 
3 
Nonaccrual loans
10 
3 
Loans Held-for-Sale |
Aggregate Unpaid Principal Balance Under Fair Value Option
 
 
Past due loans of 90 days or more
1 
5 
Nonaccrual loans
11 
12 
Loans Held-for-Sale |
Fair Value Over/(Under) Unpaid Principal
 
 
Past due loans of 90 days or more
0 
(2)
Nonaccrual loans
(1)
(9)
Loans Held For Investment [Member] |
Aggregate Fair Value Under Fair Value Option
 
 
Past due loans of 90 days or more
1 
1 
Nonaccrual loans
6 
18 
Loans Held For Investment [Member] |
Aggregate Unpaid Principal Balance Under Fair Value Option
 
 
Past due loans of 90 days or more
1 
3 
Nonaccrual loans
10 
28 
Loans Held For Investment [Member] |
Fair Value Over/(Under) Unpaid Principal
 
 
Past due loans of 90 days or more
0 
(2)
Nonaccrual loans
$ (4)
$ (10)
Change in Fair Value of Financial Instruments for which the FVO has been Elected (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Trading Account Assets [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
$ 3 1
$ 9 2
$ 8 1
$ 25 2
Trading Account Assets [Member] |
Trading Account Profits And Commissions [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
3 
9 
8 
25 
Trading Account Assets [Member] |
Mortgage Production Income [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
0 
0 
0 
0 
Trading Account Assets [Member] |
Mortgage Servicing Income [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
0 
0 
0 
0 
Loans Held-for-Sale
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
5 1
72 2
(101)1
90 2
Loans Held-for-Sale |
Trading Account Profits And Commissions [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
1 
5 
2 
10 
Loans Held-for-Sale |
Mortgage Production Income [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
4 3
67 4
(103)3
80 4
Loans Held-for-Sale |
Mortgage Servicing Income [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
0 
0 
0 
0 
Loans Held For Investment [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
5 1
5 2
(5)1
8 2
Loans Held For Investment [Member] |
Trading Account Profits And Commissions [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
0 
0 
0 
1 
Loans Held For Investment [Member] |
Mortgage Production Income [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
5 3
5 4
(5)3
7 4
Loans Held For Investment [Member] |
Mortgage Servicing Income [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
0 
0 
0 
0 
Mortgage Servicing Rights [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
(55)1
(115)2
45 1
(299)2
Mortgage Servicing Rights [Member] |
Trading Account Profits And Commissions [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
0 
0 
0 
0 
Mortgage Servicing Rights [Member] |
Mortgage Production Income [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
1 3
1 4
3 3
31 4
Mortgage Servicing Rights [Member] |
Mortgage Servicing Income [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
(56)
(116)
42 
(330)
Brokered Deposits [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
2 1
(3)2
6 1
4 2
Brokered Deposits [Member] |
Trading Account Profits And Commissions [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
2 
(3)
6 
4 
Brokered Deposits [Member] |
Mortgage Production Income [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
0 
0 
0 
0 
Brokered Deposits [Member] |
Mortgage Servicing Income [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
0 
0 
0 
0 
Long-term Debt [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
0 1
(41)2
27 1
(55)2
Long-term Debt [Member] |
Trading Account Profits And Commissions [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
0 
(41)
27 
(55)
Long-term Debt [Member] |
Mortgage Production Income [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
0 
0 
0 
0 
Long-term Debt [Member] |
Mortgage Servicing Income [Member]
 
 
 
 
Fair Value Gain/(Loss) for Items Measured at Fair Value Pursuant to Election of the Fair Value Option
$ 0 
$ 0 
$ 0 
$ 0 
Change in Fair Value of Financial Instruments for which the FVO has been Elected (Parenthetical) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Income recognized upon the sale of loans
$ 1 
$ 1 
$ 7 
$ 36 
Mortgage Production Income [Member] |
Mortgage Servicing Rights [Member]
 
 
 
 
Income recognized upon the sale of loans
$ 1 
$ 1 
$ 3 
$ 31 
Fair Value Measurement and Election - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Transfer of Loans Held-for-sale to Portfolio Loans
$ 11,000,000 
$ 3,000,000 
$ 28,000,000 
$ 34,000,000 
 
Loans Receivable, Fair Value Disclosure
316,000,000 1
 
316,000,000 1
 
379,000,000 1
Allowance for Loan and Lease Losses, Write-offs
(189,000,000)
(585,000,000)
(695,000,000)
(1,445,000,000)
 
Gain (Loss) on Sales of Loans, Net
1,000,000 
1,000,000 
7,000,000 
36,000,000 
 
Unfunded loan commitments and letters of credit
46,200,000,000 
 
46,200,000,000 
 
42,700,000,000 
Allowance for unfunded loan commitments and letters of credit
53,000,000 
 
53,000,000 
 
49,000,000 
Total Return Swap |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
 
Loans Receivable, Fair Value Disclosure
1,800,000,000 
 
1,800,000,000 
 
1,900,000,000 
Interest Rate Lock Commitments
 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3
(50,000,000)
269,000,000 
159,000,000 
659,000,000 
 
Asset-backed Securities [Member] |
Student Loans [Member]
 
 
 
 
 
Government guaranteed percent
97.00% 
 
97.00% 
 
97.00% 
Trading Account Assets [Member] |
Commercial and Corporate Leveraged Loans [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
 
Loans Receivable, Fair Value Disclosure
297,000,000 
 
297,000,000 
 
357,000,000 
Fair Value, Option, Credit Risk, Gains (Losses) on Assets
2,000,000 
1,000,000 
4,000,000 
3,000,000 
 
Residential Mortgage, Loans Held For Sale [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
 
Fair Value, Option, Credit Risk, Gains (Losses) on Assets
1,000,000 
5,000,000 
(1,000,000)
7,000,000 
 
Collateralized Loan Obligations [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
 
Fair Value, Option, Credit Risk, Gains (Losses) on Assets
1,000,000 
5,000,000 
2,000,000 
10,000,000 
 
Brokered Deposits [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
 
Fair Value, Option, Credit Risk, Gains (Losses) on Liabilities
(1,000,000)
(5,000,000)
(2,000,000)
(11,000,000)
 
Long-term Debt [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
 
Fair Value, Option, Credit Risk, Gains (Losses) on Liabilities
(9,000,000)
(48,000,000)
(27,000,000)
(54,000,000)
 
Loans Held-for-Sale |
Nonperforming Financing Receivable [Member]
 
 
 
 
 
Transfer Of Portfolio Loans And Leases To Held For Sale Net Of Impairment
 
 
22,000,000 
563,000,000 
 
Loans Held-for-Sale |
Residential Portfolio Segment [Member]
 
 
 
 
 
Loans sold at carrying value
 
 
39,000,000 
 
 
Gain (Loss) on Sales of Loans, Net
 
 
5,000,000 
 
 
Loans Held-for-Sale |
Nonperforming Residential Mortgages Transferred To Held For Sale During Period [Member]
 
 
 
 
 
Transfer of Loans Held-for-sale to Portfolio Loans
 
 
 
7,000,000 
 
Allowance for Loan and Lease Losses, Write-offs
 
 
(3,000,000)
(171,000,000)
 
Loans sold at carrying value
 
 
 
366,000,000 
 
Gain (Loss) on Sale of Loans and Leases
 
 
 
4,000,000 
 
Net Carrying Value of Loans Held For Sale, Portion Remaining in Held For Sale at Period End
 
 
 
16,000,000 
 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
 
Loans Receivable, Fair Value Disclosure
0 
 
0 
 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
 
Loans Receivable, Fair Value Disclosure
316,000,000 
 
316,000,000 
 
379,000,000 
Collateralized Debt Obligations [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
 
Debt Instrument, Fair Value Disclosure
284,000,000 
 
284,000,000 
 
 
Other Real Estate Owned [Member] |
Fair Value, Measurements, Nonrecurring [Member]
 
 
 
 
 
Asset Impairment Charges
9,000,000 
 
16,000,000 
 
48,000,000 
Other Real Estate Owned [Member] |
Fair Value, Measurements, Nonrecurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
 
Assets Re-valued Using Pooled Approach, Percentage
10.00% 
 
10.00% 
 
 
Other real estate owned residential properties [Member] |
Fair Value, Measurements, Nonrecurring [Member] |
Minimum [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
 
Fair Value Inputs, Discount Rate, Variable Spread
 
 
35.00% 
 
 
Other real estate owned residential properties [Member] |
Fair Value, Measurements, Nonrecurring [Member] |
Upper Limit |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
 
Fair Value Inputs, Discount Rate, Variable Spread
 
 
55.00% 
 
 
Other real estate owned residential properties [Member] |
Fair Value, Measurements, Nonrecurring [Member] |
Weighted Average [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
 
Fair Value Inputs, Discount Rate, Variable Spread
 
 
45.00% 
 
 
Other Assets [Member] |
Fair Value, Measurements, Nonrecurring [Member]
 
 
 
 
 
Asset Impairment Charges
38,000,000 
 
39,000,000 
 
13,000,000 
Other Assets [Member] |
Fair Value, Measurements, Nonrecurring [Member] |
Repossessed Personal Property [Member]
 
 
 
 
 
Asset Impairment Charges
11,000,000 
1,000,000 
11,000,000 
2,000,000 
 
Other Assets [Member] |
Fair Value, Measurements, Nonrecurring [Member] |
Land [Member]
 
 
 
 
 
Asset Impairment Charges
0 
7,000,000 
0 
7,000,000 
 
Other Assets [Member] |
Fair Value, Measurements, Nonrecurring [Member] |
Property Subject to Operating Lease [Member]
 
 
 
 
 
Asset Impairment Charges
27,000,000 
0 
28,000,000 
1,000,000 
 
Other Assets [Member] |
Fair Value, Measurements, Nonrecurring [Member] |
Private Equity Partnership Investments [Member]
 
 
 
 
 
Asset Impairment Charges
0 
0 
0 
0 
 
Affordable Housing [Member] |
Fair Value, Measurements, Nonrecurring [Member]
 
 
 
 
 
Asset Impairment Charges
 
96,000,000 
 
96,000,000 
96,000,000 
Other Nonrecurring Gain
$ 9,000,000 
 
$ 9,000,000 
 
 
Other real estate owned commercial properties [Member] |
Fair Value, Measurements, Nonrecurring [Member] |
Minimum [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
 
Fair Value Inputs, Discount Rate, Variable Spread
 
 
15.00% 
 
 
Other real estate owned commercial properties [Member] |
Fair Value, Measurements, Nonrecurring [Member] |
Upper Limit |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
 
Fair Value Inputs, Discount Rate, Variable Spread
 
 
40.00% 
 
 
Other real estate owned commercial properties [Member] |
Fair Value, Measurements, Nonrecurring [Member] |
Weighted Average [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
 
Fair Value Inputs, Discount Rate, Variable Spread
 
 
23.00% 
 
 
Fair Value Election and Measurement Level 3 Significant Unobservable Input Assumptions (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended 12 Months Ended
Sep. 30, 2013
Dec. 31, 2012
level 3 fair value assumptions [Line Items]
 
 
Trading assets
$ 5,731 
$ 6,049 
Available-for-sale Securities
22,626 
21,953 
Loans Held-for-sale, Fair Value Disclosure
2,240 1
3,243 1
Loans Receivable, Fair Value Disclosure
316 2
379 2
Servicing Asset at Fair Value, Amount
1,248 
899 
Other Liabilities, Fair Value Disclosure
77 3 4 5
46 3 5 6
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Trading assets
69 
58 
Available-for-sale Securities
895 
914 
Loans Held-for-sale, Fair Value Disclosure
4 
8 
Loans Receivable, Fair Value Disclosure
316 
379 
Servicing Asset at Fair Value, Amount
1,248 
899 
Other Assets, Fair Value Disclosure
47 3 4
132 3 6
Other Liabilities, Fair Value Disclosure
28 3 4 5
31 3 5 6
Fair Value, Measurements, Recurring [Member] |
Other Liabilities [Member] |
Income Approach Valuation Technique [Member] |
Minimum [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
fair value inputs, loan production volume
0.00% 
0.00% 
Fair Value, Measurements, Recurring [Member] |
Other Liabilities [Member] |
Income Approach Valuation Technique [Member] |
Upper Limit |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
fair value inputs, loan production volume
150.00% 
150.00% 
Fair Value, Measurements, Recurring [Member] |
Other Liabilities [Member] |
Income Approach Valuation Technique [Member] |
Weighted Average [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
fair value inputs, loan production volume
92.00% 
92.00% 
Fair Value, Measurements, Recurring [Member] |
Other Liabilities [Member] |
Income Approach Valuation Technique [Member] |
Loan Production Volume [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Other Liabilities, Fair Value Disclosure
23 7
24 8
Fair Value, Measurements, Recurring [Member] |
Other Liabilities [Member] |
Income Approach Valuation Technique [Member] |
Revenue Run Rate [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Other Liabilities, Fair Value Disclosure
3 7
7 8
Fair Value, Measurements, Recurring [Member] |
Equity Securities |
Cost Approach Valuation Technique [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Available-for-sale Securities
669 
633 
Fair Value, Measurements, Recurring [Member] |
Collateralized Debt Obligations [Member] |
Market Approach Valuation Technique [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Trading assets
63 
52 
Fair Value, Measurements, Recurring [Member] |
Collateralized Debt Obligations [Member] |
Market Approach Valuation Technique [Member] |
Minimum [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Fair Value Inputs, indicative pricing based on overcollateralization ratio
42 
33 
Fair Value Inputs, Estimated Collateral Losses
32.00% 
34.00% 
Fair Value Inputs, Market Yield
5.00% 
 
Fair Value, Measurements, Recurring [Member] |
Collateralized Debt Obligations [Member] |
Market Approach Valuation Technique [Member] |
Upper Limit |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Fair Value Inputs, indicative pricing based on overcollateralization ratio
54 
45 
Fair Value Inputs, Estimated Collateral Losses
38.00% 
45.00% 
Fair Value Inputs, Market Yield
7.00% 
 
Fair Value, Measurements, Recurring [Member] |
Collateralized Debt Obligations [Member] |
Market Approach Valuation Technique [Member] |
Weighted Average [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Fair Value Inputs, indicative pricing based on overcollateralization ratio
48 
40 
Fair Value Inputs, Estimated Collateral Losses
34.00% 
39.00% 
Fair Value Inputs, Market Yield
6.00% 
 
Fair Value, Measurements, Recurring [Member] |
Asset-backed Securities [Member] |
Market Approach Valuation Technique [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Trading assets
6 
5 
Available-for-sale Securities
21 
21 
Fair Value, Measurements, Recurring [Member] |
Asset-backed Securities [Member] |
Market Approach Valuation Technique [Member] |
Minimum [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Fair Value Inputs, Indicative Pricing
55 
45 
Fair Value, Measurements, Recurring [Member] |
Asset-backed Securities [Member] |
Market Approach Valuation Technique [Member] |
Upper Limit |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Fair Value Inputs, Indicative Pricing
55 
45 
Fair Value, Measurements, Recurring [Member] |
Asset-backed Securities [Member] |
Market Approach Valuation Technique [Member] |
Weighted Average [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Fair Value Inputs, Indicative Pricing
55 
45 
Fair Value, Measurements, Recurring [Member] |
Other Debt Obligations [Member] |
Market Approach Valuation Technique [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Trading assets
 
1 
Fair Value, Measurements, Recurring [Member] |
Other Debt Obligations [Member] |
Cost Approach Valuation Technique [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Available-for-sale Securities
5 
5 
Fair Value, Measurements, Recurring [Member] |
US States and Political Subdivisions Debt Securities [Member] |
Market Approach Valuation Technique [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Available-for-sale Securities
34 
46 
Fair Value, Measurements, Recurring [Member] |
US States and Political Subdivisions Debt Securities [Member] |
Market Approach Valuation Technique [Member] |
Minimum [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Fair Value Inputs, Indicative Pricing
80 
72 
Fair Value, Measurements, Recurring [Member] |
US States and Political Subdivisions Debt Securities [Member] |
Market Approach Valuation Technique [Member] |
Upper Limit |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Fair Value Inputs, Indicative Pricing
108 
115 
Fair Value, Measurements, Recurring [Member] |
US States and Political Subdivisions Debt Securities [Member] |
Market Approach Valuation Technique [Member] |
Weighted Average [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Fair Value Inputs, Indicative Pricing
94 
92 
Fair Value, Measurements, Recurring [Member] |
Mortgage-backed Securities, Issued by Private Enterprises [Member] |
Market Approach Valuation Technique [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Available-for-sale Securities
166 
209 
Fair Value, Measurements, Recurring [Member] |
Residential Mortgage, Loans Held For Sale [Member] |
Income Approach Valuation Technique [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Loans Held-for-sale, Fair Value Disclosure
4 
8 
Fair Value, Measurements, Recurring [Member] |
Residential Mortgage, Loans Held For Sale [Member] |
Income Approach Valuation Technique [Member] |
Minimum [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Fair Value Inputs, Option Adjusted Spread
2.50% 
0.00% 
Fair Value Inputs, Conditional Prepayment Rate
2.00% 
5.00% 
Fair Value Inputs, Probability of Default
0.00% 
0.00% 
Fair Value, Measurements, Recurring [Member] |
Residential Mortgage, Loans Held For Sale [Member] |
Income Approach Valuation Technique [Member] |
Upper Limit |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Fair Value Inputs, Option Adjusted Spread
6.75% 
6.22% 
Fair Value Inputs, Conditional Prepayment Rate
11.00% 
30.00% 
Fair Value Inputs, Probability of Default
4.00% 
20.00% 
Fair Value, Measurements, Recurring [Member] |
Residential Mortgage, Loans Held For Sale [Member] |
Income Approach Valuation Technique [Member] |
Weighted Average [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Fair Value Inputs, Option Adjusted Spread
3.60% 
2.51% 
Fair Value Inputs, Conditional Prepayment Rate
6.00% 
15.00% 
Fair Value Inputs, Probability of Default
1.00% 
3.50% 
Fair Value, Measurements, Recurring [Member] |
Loans Held For Investment [Member] |
Market Approach Valuation Technique [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Loans Receivable, Fair Value Disclosure
8 
10 
Fair Value, Measurements, Recurring [Member] |
Loans Held For Investment [Member] |
Income Approach Valuation Technique [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Loans Receivable, Fair Value Disclosure
308 
369 
Fair Value, Measurements, Recurring [Member] |
Loans Held For Investment [Member] |
Income Approach Valuation Technique [Member] |
Minimum [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Fair Value Inputs, Option Adjusted Spread
0.00% 
0.00% 
Fair Value Inputs, Conditional Prepayment Rate
1.00% 
5.00% 
Fair Value Inputs, Probability of Default
0.00% 
0.00% 
Fair Value, Measurements, Recurring [Member] |
Loans Held For Investment [Member] |
Income Approach Valuation Technique [Member] |
Upper Limit |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Fair Value Inputs, Option Adjusted Spread
6.75% 
6.22% 
Fair Value Inputs, Conditional Prepayment Rate
35.00% 
30.00% 
Fair Value Inputs, Probability of Default
8.00% 
20.00% 
Fair Value, Measurements, Recurring [Member] |
Loans Held For Investment [Member] |
Income Approach Valuation Technique [Member] |
Weighted Average [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Fair Value Inputs, Option Adjusted Spread
3.01% 
2.51% 
Fair Value Inputs, Conditional Prepayment Rate
12.00% 
15.00% 
Fair Value Inputs, Probability of Default
3.00% 
3.50% 
Fair Value, Measurements, Recurring [Member] |
Mortgage Servicing Rights [Member] |
Income Approach Valuation Technique [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Servicing Asset at Fair Value, Amount
1,248 
899 
Fair Value, Measurements, Recurring [Member] |
Mortgage Servicing Rights [Member] |
Income Approach Valuation Technique [Member] |
Minimum [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Fair Value Inputs, Conditional Prepayment Rate
5.00% 
6.00% 
Fair Value Inputs, Discount Rate
8.00% 
9.00% 
Fair Value, Measurements, Recurring [Member] |
Mortgage Servicing Rights [Member] |
Income Approach Valuation Technique [Member] |
Upper Limit |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Fair Value Inputs, Conditional Prepayment Rate
26.00% 
31.00% 
Fair Value Inputs, Discount Rate
28.00% 
28.00% 
Fair Value, Measurements, Recurring [Member] |
Mortgage Servicing Rights [Member] |
Income Approach Valuation Technique [Member] |
Weighted Average [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Fair Value Inputs, Conditional Prepayment Rate
9.00% 
16.00% 
Fair Value Inputs, Discount Rate
12.00% 
11.00% 
Fair Value, Measurements, Recurring [Member] |
Other Assets [Member] |
Market Approach Valuation Technique [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Other Assets, Fair Value Disclosure
$ 46 7
$ 132 8
Fair Value, Measurements, Recurring [Member] |
Other Assets [Member] |
Market Approach Valuation Technique [Member] |
Minimum [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Fair Value Inputs, Pull Through Rate
1.00% 
9.00% 
Fair Value Inputs, Msr Value
0.11% 
0.06% 
Fair Value, Measurements, Recurring [Member] |
Other Assets [Member] |
Market Approach Valuation Technique [Member] |
Upper Limit |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Fair Value Inputs, Pull Through Rate
99.00% 
98.00% 
Fair Value Inputs, Msr Value
2.33% 
2.44% 
Fair Value, Measurements, Recurring [Member] |
Other Assets [Member] |
Market Approach Valuation Technique [Member] |
Weighted Average [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
level 3 fair value assumptions [Line Items]
 
 
Fair Value Inputs, Pull Through Rate
73.00% 
71.00% 
Fair Value Inputs, Msr Value
1.04% 
1.04% 
Fair Value Election and Measurement Level 3 Significant Unobservable Input Assumptions (parenthetical) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
 
 
Other Liabilities, Fair Value Disclosure
$ 77 1 2 3
$ 46 1 2 4
Not Designated as Hedging Instrument [Member] |
Derivative Financial Instruments, Liabilities [Member] |
Visa Interest [Member] |
Other Liabilities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
 
 
Other Liabilities, Fair Value Disclosure
$ 1 
 
Reconciliation of the Beginning and Ending Balances for Fair Valued Assets and Liabilities Measured on a Recurring Basis Using Significant Unobservable Inputs (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Jun. 30, 2013
Dec. 31, 2012
Jun. 30, 2012
Dec. 31, 2011
Other Assets And Liabilities, Net [Member]
 
 
 
 
 
 
 
 
Included in earnings
 
$ 331 1
$ 72 1
$ 769 1
 
 
 
 
OCI
0 
0 
0 
0 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
0 
(31)
 
 
 
 
Sales
0 
0 
0 
0 
 
 
 
 
Settlements
4 
3 
5 
25 
 
 
 
 
Transfers to other balance sheet line items
50 
(269)
(159)
(659)
 
 
 
 
Transfers into Level 3
0 
0 
0 
0 
 
 
 
 
Transferred Out of Level 3 in The Fair Value Hierarchy
0 
 
0 
0 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
19 
166 
19 
166 
 
101 
101 
62 
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) Included in Other Income
0 
0 
1 1 2
0 
 
 
 
 
Loans Held-for-Sale |
Residential Mortgage, Loans Held For Sale [Member]
 
 
 
 
 
 
 
 
Included in earnings
0 
0 
0 
0 
 
 
 
 
OCI
0 
0 
0 
0 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
0 
0 
 
 
 
 
Sales
(4)
(5)
(20)
(6)
 
 
 
 
Settlements
0 
0 
0 
0 
 
 
 
 
Transfers to other balance sheet line items
(5)
2 
(8)
4 
 
 
 
 
Transfers into Level 3
6 
5 
28 
10 
 
 
 
 
Transferred Out of Level 3 in The Fair Value Hierarchy
(1)
 
(4)
(5)
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
4 
4 
4 
4 
8 
8 
2 
1 
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) Included in Other Income
0 
0 
0 
0 
 
 
 
 
Trading Account Assets [Member]
 
 
 
 
 
 
 
 
Included in earnings
0 
4 3
12 3
4 3
 
 
 
 
OCI
0 
0 
0 
0 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
0 
0 
 
 
 
 
Sales
0 
0 
0 
0 
 
 
 
 
Settlements
0 
0 
(1)
0 
 
 
 
 
Transfers to other balance sheet line items
0 
0 
0 
0 
 
 
 
 
Transfers into Level 3
0 
0 
0 
0 
 
 
 
 
Transferred Out of Level 3 in The Fair Value Hierarchy
0 
 
0 
0 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
69 
53 
69 
53 
69 
58 
49 
49 
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) Included in Other Income
0 
4 3 4
12 2 3
4 3 4
 
 
 
 
Trading Account Assets [Member] |
Asset-backed Securities [Member]
 
 
 
 
 
 
 
 
Included in earnings
0 
0 
1 3
0 
 
 
 
 
OCI
0 
0 
0 
0 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
0 
0 
 
 
 
 
Sales
0 
0 
0 
0 
 
 
 
 
Settlements
0 
0 
0 
0 
 
 
 
 
Transfers to other balance sheet line items
0 
0 
0 
0 
 
 
 
 
Transfers into Level 3
0 
0 
0 
0 
 
 
 
 
Transferred Out of Level 3 in The Fair Value Hierarchy
0 
 
0 
0 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
6 
5 
6 
5 
6 
5 
5 
5 
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) Included in Other Income
0 
0 
1 2 3
0 
 
 
 
 
Trading Account Assets [Member] |
Other Debt Obligations [Member]
 
 
 
 
 
 
 
 
Included in earnings
 
0 
0 
0 
 
 
 
 
OCI
 
0 
0 
0 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
 
 
0 
0 
 
 
 
 
Sales
 
0 
0 
0 
 
 
 
 
Settlements
 
0 
(1)
0 
 
 
 
 
Transfers to other balance sheet line items
 
0 
0 
0 
 
 
 
 
Transfers into Level 3
 
0 
0 
0 
 
 
 
 
Transferred Out of Level 3 in The Fair Value Hierarchy
 
 
0 
0 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
0 
1 
0 
1 
 
1 
1 
1 
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) Included in Other Income
 
0 
0 
0 
 
 
 
 
Trading Account Assets [Member] |
Collateralized Debt Obligations [Member]
 
 
 
 
 
 
 
 
Included in earnings
0 
4 3
11 3
4 3
 
 
 
 
OCI
0 
0 
0 
0 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
0 
0 
 
 
 
 
Sales
0 
0 
0 
0 
 
 
 
 
Settlements
0 
0 
0 
0 
 
 
 
 
Transfers to other balance sheet line items
0 
0 
0 
0 
 
 
 
 
Transfers into Level 3
0 
0 
0 
0 
 
 
 
 
Transferred Out of Level 3 in The Fair Value Hierarchy
0 
 
0 
0 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
63 
47 
63 
47 
63 
52 
43 
43 
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) Included in Other Income
0 
4 3 4
11 2 3
4 3 4
 
 
 
 
Available-for-sale Securities [Member]
 
 
 
 
 
 
 
 
Included in earnings
0 
(3)5
(1)6
(7)5
 
 
 
 
OCI
(2)7
23 8
0 
39 8
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
4 
 
114 
165 
 
 
 
 
Sales
0 
0 
(7)
0 
 
 
 
 
Settlements
(86)
(36)
(125)
(112)
 
 
 
 
Transfers to other balance sheet line items
0 
0 
0 
0 
 
 
 
 
Transfers into Level 3
0 
0 
0 
0 
 
 
 
 
Transferred Out of Level 3 in The Fair Value Hierarchy
0 
 
0 
0 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
895 
1,126 
895 
1,126 
979 
914 
1,142 
1,041 
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) Included in Other Income
0 
(3)4 5
(1)2 6
(7)4 5
 
 
 
 
Available-for-sale Securities [Member] |
US States and Political Subdivisions Debt Securities [Member]
 
 
 
 
 
 
 
 
Included in earnings
0 
0 
0 
0 
 
 
 
 
OCI
0 
1 8
2 
0 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
0 
0 
 
 
 
 
Sales
0 
0 
(7)
0 
 
 
 
 
Settlements
(3)
(5)
(7)
(7)
 
 
 
 
Transfers to other balance sheet line items
0 
0 
0 
0 
 
 
 
 
Transfers into Level 3
0 
0 
0 
0 
 
 
 
 
Transferred Out of Level 3 in The Fair Value Hierarchy
0 
 
0 
0 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
34 
51 
34 
51 
37 
46 
55 
58 
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) Included in Other Income
0 
0 
0 
0 
 
 
 
 
Available-for-sale Securities [Member] |
Asset-backed Securities [Member]
 
 
 
 
 
 
 
 
Included in earnings
0 
0 
(1)6
0 
 
 
 
 
OCI
0 
1 8
3 
4 8
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
0 
0 
 
 
 
 
Sales
0 
0 
0 
0 
 
 
 
 
Settlements
(1)
0 
(2)
(2)
 
 
 
 
Transfers to other balance sheet line items
0 
0 
0 
0 
 
 
 
 
Transfers into Level 3
0 
0 
0 
0 
 
 
 
 
Transferred Out of Level 3 in The Fair Value Hierarchy
0 
 
0 
0 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
21 
18 
21 
18 
22 
21 
17 
16 
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) Included in Other Income
0 
0 
(1)2 6
0 
 
 
 
 
Available-for-sale Securities [Member] |
Other Debt Obligations [Member]
 
 
 
 
 
 
 
 
Included in earnings
0 
0 
0 
0 
 
 
 
 
OCI
0 
0 
0 
0 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
4 
 
4 
2 
 
 
 
 
Sales
0 
0 
0 
0 
 
 
 
 
Settlements
(1)
0 
(4)
(2)
 
 
 
 
Transfers to other balance sheet line items
0 
0 
0 
0 
 
 
 
 
Transfers into Level 3
0 
0 
0 
0 
 
 
 
 
Transferred Out of Level 3 in The Fair Value Hierarchy
0 
 
0 
0 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
5 
5 
5 
5 
2 
5 
5 
5 
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) Included in Other Income
0 
0 
0 
0 
 
 
 
 
Available-for-sale Securities [Member] |
Equity Securities
 
 
 
 
 
 
 
 
Included in earnings
0 
0 
0 
0 
 
 
 
 
OCI
0 
0 
0 
0 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
110 
163 
 
 
 
 
Sales
0 
0 
0 
0 
 
 
 
 
Settlements
(68)
(22)
(74)
(69)
 
 
 
 
Transfers to other balance sheet line items
0 
0 
0 
0 
 
 
 
 
Transfers into Level 3
0 
0 
0 
0 
 
 
 
 
Transferred Out of Level 3 in The Fair Value Hierarchy
0 
 
0 
0 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
669 
835 
669 
835 
737 
633 
857 
741 
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) Included in Other Income
0 
0 
0 
0 
 
 
 
 
Available-for-sale Securities [Member] |
Mortgage-backed Securities, Issued by Private Enterprises [Member]
 
 
 
 
 
 
 
 
Included in earnings
0 
(3)5
0 
(7)5
 
 
 
 
OCI
(2)7
21 8
(5)
35 8
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
0 
0 
 
 
 
 
Sales
0 
0 
0 
0 
 
 
 
 
Settlements
(13)
(9)
(38)
(32)
 
 
 
 
Transfers to other balance sheet line items
0 
0 
0 
0 
 
 
 
 
Transfers into Level 3
0 
0 
0 
0 
 
 
 
 
Transferred Out of Level 3 in The Fair Value Hierarchy
0 
 
0 
0 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
166 
217 
166 
217 
181 
209 
208 
221 
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) Included in Other Income
0 
(3)4 5
0 
(7)4 5
 
 
 
 
Loans Held For Investment [Member]
 
 
 
 
 
 
 
 
Included in earnings
4 9
3 9
(2)9
4 9
 
 
 
 
OCI
0 
0 
0 
0 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases
0 
 
0 
0 
 
 
 
 
Sales
0 
0 
0 
0 
 
 
 
 
Settlements
(15)
(14)
(47)
(40)
 
 
 
 
Transfers to other balance sheet line items
(12)
(6)
(14)
(10)
 
 
 
 
Transfers into Level 3
0 
1 
0 
4 
 
 
 
 
Transferred Out of Level 3 in The Fair Value Hierarchy
0 
 
0 
(1)
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value
316 
390 
316 
390 
339 
379 
406 
433 
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) Included in Other Income
2 2 9
0 
(8)2 9
1 4 9
 
 
 
 
Other Assets And Liabilities, Net [Member]
 
 
 
 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value
 
 
 
 
(81)
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings
46 1
 
 
 
 
 
 
 
Derivative Financial Instruments, Liabilities [Member]
 
 
 
 
 
 
 
 
OCI
 
355 10
 
194 10
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases
 
 
 
0 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Sales
 
0 
 
0 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements
 
299 
 
299 
 
 
 
 
Transfers to other balance sheet line items
 
0 
 
0 
 
 
 
 
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Liabilities Transfers Into Level 3
 
0 
 
0 
 
 
 
 
Fair Value Measurement With Unobservable Inputs Reconciliation, Recurring Basis, Liabilities Transfers Out Of Level 3
 
 
 
0 
 
 
 
 
Change in unrealized gains / (losses) included in earnings for the period related to financial assets still held at the end of period
 
0 
 
0 
 
 
 
 
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value
 
0 
 
0 
 
 
(349)
(189)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings
 
$ (305)5
 
$ (304)5
 
 
 
 
Carrying Value of Those Assets Measured at Fair Value on a Non-Recurring Basis (Detail) (Fair Value, Measurements, Nonrecurring [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Loans Held-for-Sale
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Assets, Fair Value Disclosure
$ 33 
 
$ 33 
 
$ 65 
Asset Impairment Charges
(3)
 
(10)
 
0 
Loans Held-for-Sale |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Assets, Fair Value Disclosure
0 
 
0 
 
0 
Loans Held-for-Sale |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Assets, Fair Value Disclosure
33 
 
33 
 
65 
Loans Held-for-Sale |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Assets, Fair Value Disclosure
0 
 
0 
 
0 
Loans Held For Investment [Member]
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Assets, Fair Value Disclosure
71 
 
71 
 
308 
Asset Impairment Charges
0 
0 
0 
0 
(79)
Loans Held For Investment [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Assets, Fair Value Disclosure
0 
 
0 
 
0 
Loans Held For Investment [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Assets, Fair Value Disclosure
0 
 
0 
 
0 
Loans Held For Investment [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Assets, Fair Value Disclosure
71 
 
71 
 
308 
Other Real Estate Owned [Member]
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Assets, Fair Value Disclosure
56 
 
56 
 
264 
Asset Impairment Charges
(9)
 
(16)
 
(48)
Other Real Estate Owned [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Assets, Fair Value Disclosure
0 
 
0 
 
0 
Other Real Estate Owned [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Assets, Fair Value Disclosure
3 
 
3 
 
205 
Other Real Estate Owned [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Assets, Fair Value Disclosure
53 
 
53 
 
59 
Affordable Housing [Member]
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Assets, Fair Value Disclosure
69 
 
69 
 
82 
Other Nonrecurring Gain
9 
 
9 
 
 
Asset Impairment Charges
 
(96)
 
(96)
(96)
Affordable Housing [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Assets, Fair Value Disclosure
0 
 
0 
 
0 
Affordable Housing [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Assets, Fair Value Disclosure
0 
 
0 
 
0 
Affordable Housing [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Assets, Fair Value Disclosure
69 
 
69 
 
82 
Other Assets [Member]
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Assets, Fair Value Disclosure
224 
 
224 
 
65 
Asset Impairment Charges
(38)
 
(39)
 
(13)
Other Assets [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Assets, Fair Value Disclosure
0 
 
0 
 
0 
Other Assets [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Assets, Fair Value Disclosure
224 
 
224 
 
42 
Other Assets [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
Assets, Fair Value Disclosure
$ 0 
 
$ 0 
 
$ 23 
Carrying Amounts and Fair Values of the Company's Financial Instruments (Detail) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Financial assets
 
 
Trading assets
$ 5,731 
$ 6,049 
Available-for-sale Securities
22,626 
21,953 
Loans Held-for-sale, Fair Value Disclosure
2,240 1
3,243 1
Financial liabilities
 
 
Long-term Debt, Fair Value
1,593 2
1,622 2
Trading liabilities
1,264 
1,161 
Carrying (Reported) Amount, Fair Value Disclosure
 
 
Financial assets
 
 
Cash and cash equivalents
4,286 
8,257 
Trading assets
5,731 
6,049 
Available-for-sale Securities
22,626 
21,953 
Loans Held-for-sale, Fair Value Disclosure
2,462 
3,399 
Loans Net Fair Value Disclosure
122,269 
119,296 
Financial liabilities
 
 
Consumer and commercial deposits
126,861 
130,180 
Brokered deposits
2,022 
2,136 
Short-term borrowings
6,987 
5,494 
Long-term Debt, Fair Value
9,985 
9,357 
Trading liabilities
1,264 
1,161 
Estimate of Fair Value, Fair Value Disclosure [Member]
 
 
Financial assets
 
 
Cash and cash equivalents
4,286 3
8,257 3
Trading assets
5,731 4
6,049 4
Available-for-sale Securities
22,626 4
21,953 4
Loans Held-for-sale, Fair Value Disclosure
2,462 5
3,399 5
Loans Net Fair Value Disclosure
118,165 6
115,690 6
Financial liabilities
 
 
Consumer and commercial deposits
126,930 7
130,449 7
Brokered deposits
2,022 8
2,164 8
Short-term borrowings
6,987 8
5,494 8
Long-term Debt, Fair Value
9,970 8
9,413 8
Trading liabilities
1,264 4
1,161 4
Estimate of Fair Value, Fair Value Disclosure [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Financial assets
 
 
Cash and cash equivalents
4,286 3
8,257 3
Trading assets
1,008 4
394 4
Available-for-sale Securities
878 4
291 4
Loans Held-for-sale, Fair Value Disclosure
0 
0 
Loans Net Fair Value Disclosure
0 
0 
Financial liabilities
 
 
Consumer and commercial deposits
0 
0 
Brokered deposits
0 
0 
Short-term borrowings
0 
0 
Long-term Debt, Fair Value
0 
0 
Trading liabilities
1,010 4
591 4
Estimate of Fair Value, Fair Value Disclosure [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Financial assets
 
 
Cash and cash equivalents
0 
0 
Trading assets
4,654 4
5,597 4
Available-for-sale Securities
20,853 4
20,748 4
Loans Held-for-sale, Fair Value Disclosure
2,458 5
3,375 5
Loans Net Fair Value Disclosure
3,046 6
4,041 6
Financial liabilities
 
 
Consumer and commercial deposits
126,930 7
130,449 7
Brokered deposits
2,022 8
2,164 8
Short-term borrowings
6,987 8
5,494 8
Long-term Debt, Fair Value
9,415 8
8,829 8
Trading liabilities
254 4
570 4
Estimate of Fair Value, Fair Value Disclosure [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Financial assets
 
 
Cash and cash equivalents
0 
0 
Trading assets
69 4
58 4
Available-for-sale Securities
895 4
914 4
Loans Held-for-sale, Fair Value Disclosure
4 5
24 5
Loans Net Fair Value Disclosure
115,119 6
111,649 6
Financial liabilities
 
 
Consumer and commercial deposits
0 
0 
Brokered deposits
0 
0 
Short-term borrowings
0 
0 
Long-term Debt, Fair Value
555 8
584 8
Trading liabilities
$ 0 
$ 0 
[6] LHFI fair values are based on a hypothetical exit price, which does not represent the estimated intrinsic value of the loan if held for investment. The assumptions used are expected to approximate those that a market participant purchasing the loans would use to value the loans, including a market risk premium and liquidity discount. Estimating the fair value of the loan portfolio when loan sales and trading markets are illiquid, or for certain loan types, nonexistent, requires significant judgment. Therefore, the estimated fair value can vary significantly depending on a market participant’s ultimate considerations and assumptions. The final value yields a market participant’s expected return on investment that is indicative of the current market conditions, but it does not take into consideration the Company’s estimated value from continuing to hold these loans or its lack of willingness to transact at these estimated values.The Company generally estimated fair value for LHFI based on estimated future cash flows discounted, initially, at current origination rates for loans with similar terms and credit quality, which derived an estimated value of 100% and 101% on the loan portfolio’s net carrying value at September 30, 2013 and December 31, 2012, respectively. The value derived from origination rates likely does not represent an exit price; therefore, an incremental market risk and liquidity discount was subtracted from the initial value at September 30, 2013 and December 31, 2012, respectively. The discounted value is a function of a market participant’s required yield in the current environment and is not a reflection of the expected cumulative losses on the loans. Loan prepayments are used to adjust future cash flows based on historical experience and prepayment model forecasts. The value of related accrued interest on loans approximates fair value; however, it is not included in the carrying amount or fair value of loans. The value of long-term customer relationships is not permitted under current U.S. GAAP to be included in the estimated fair value
[8] Fair values for foreign deposits, certain brokered time deposits, short-term borrowings, and certain long-term debt are based on quoted market prices for similar instruments or estimated using discounted cash flow analysis and the Company’s current incremental borrowing rates for similar types of instruments. For brokered time deposits and long-term debt that the Company carries at fair value, refer to the respective valuation sections within this footnote. For level 3 debt, the terms are unique in nature or there are otherwise no similar instruments than can be used to value the instrument without using significant unobservable assumptions. In this situation, we look at current borrowing rates along with the collateral levels that secure the debt in determining an appropriate fair value adjustment.
Carrying Amounts and Fair Values of the Company's Financial Instruments (Parenthetical) (Detail)
Sep. 30, 2013
Dec. 31, 2012
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Estimated Fair Value of Loan Portfolio's Net Carrying Value, Percentage
100.00% 
101.00% 
Contingencies - Additional Information (Detail) (USD $)
9 Months Ended
Sep. 30, 2013
Minimum [Member]
Sep. 30, 2013
Upper Limit
Aug. 19, 2011
United Guaranty [Member]
Sep. 30, 2013
Potential Statutory Civil Penalty per Violation [Member]
Minimum [Member]
Sep. 30, 2013
Potential Statutory Civil Penalty per Violation [Member]
Upper Limit
Sep. 30, 2013
Cash payment for litigation [Member]
Consent Order Foreclosure Actions [Member]
Sep. 30, 2013
Cash payment for litigation [Member]
Potential Mortgage Servicing Settlement and Claims [Member]
Sep. 30, 2013
Loss mitigation or other foreclosure prevention [Member]
Consent Order Foreclosure Actions [Member]
Sep. 30, 2013
Lump sum payments to individual borrowers [Member]
Consent Order Foreclosure Actions [Member]
Minimum [Member]
Sep. 30, 2013
Lump sum payments to individual borrowers [Member]
Consent Order Foreclosure Actions [Member]
Upper Limit
Sep. 30, 2013
Civil money penalty [Member]
Consent Order Foreclosure Actions [Member]
Sep. 30, 2013
Consumer relief obligation [Member]
Potential Mortgage Servicing Settlement and Claims [Member]
Aggregate range of reasonably possible losses on legal matters in excess of the accrued liability
$ 0 
$ 250,000,000 
 
 
 
 
 
 
 
 
 
 
Contingent Receipt, Judgement Award for Damages
 
 
34,000,000 
 
 
 
 
 
 
 
 
 
Contingent Receipt, Judgement Interest Award
 
 
6,000,000 
 
 
 
 
 
 
 
 
 
Contingent Receipt, Judgement Award for Claims Fees
 
 
5,000,000 
 
 
 
 
 
 
 
 
 
Contingent Receipt, Total Judgment Award
 
 
45,000,000 
 
 
 
 
 
 
 
 
 
Loss Contingency, Damages Sought, Value
 
 
 
5,500 
11,000 
 
 
 
300 
125,000 
 
 
Loss Contingency, Damages Paid, Value
 
 
 
 
 
63,000,000 
 
 
 
 
 
 
Loss Contingency, Damages Awarded, Value
 
 
 
 
 
 
$ 468,000,000 
$ 100,000,000 
 
 
$ 160,000,000 
$ 500,000,000 
Business Segment Reporting (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Average total assets
$ 171,838 
$ 175,282 
$ 172,061 
$ 176,679 
Average total liabilities
150,811 
154,663 
150,923 
156,229 
Average total equity
21,027 
20,619 
21,138 
20,450 
Net, interest income
1,208 
1,271 
3,640 
3,856 
FTE adjustment
32 
30 
93 
93 
Segment Reporting Information Net Interest Income Including Fully Taxable Equivalent Adjustment
1,240 1
1,301 1
3,733 1
3,949 1
Provision for Loan, Lease, and Other Losses
95 
450 2
453 2
1,067 2
Segment Reporting Information Net Interest Income After Provision For Credit Losses and Taxable Equivalent Adjustment
1,145 
851 
3,280 
2,882 
Total noninterest income
680 
2,542 
2,401 
4,358 
Noninterest Expense
1,743 
1,726 
4,503 
4,813 
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest
82 
1,667 
1,178 
2,427 
Income Tax Expense (Benefit) Including Fully Taxable Equivalent Adjustment Reversal
(114)
581 3
244 3
803 3
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest
196 
1,086 
934 
1,624 
Net Income (Loss) Attributable to Noncontrolling Interest
7 
9 
16 
22 
Net Income (Loss) Attributable to Parent
189 
1,077 
918 
1,602 
Consumer Banking and Private Wealth Management [Member]
 
 
 
 
Average total assets
45,532 
47,053 
45,156 
47,029 
Average total liabilities
84,744 
84,107 
84,980 
84,749 
Average total equity
0 
0 
0 
0 
Net, interest income
653 
691 
1,950 
2,057 
FTE adjustment
0 
0 
0 
0 
Segment Reporting Information Net Interest Income Including Fully Taxable Equivalent Adjustment
653 1
691 1
1,950 1
2,057 1
Provision for Loan, Lease, and Other Losses
79 
172 2
286 2
464 2
Segment Reporting Information Net Interest Income After Provision For Credit Losses and Taxable Equivalent Adjustment
574 
519 
1,664 
1,593 
Total noninterest income
379 
356 
1,107 
1,115 
Noninterest Expense
689 
773 
2,082 
2,285 
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest
264 
102 
689 
423 
Income Tax Expense (Benefit) Including Fully Taxable Equivalent Adjustment Reversal
97 
39 3
253 3
155 3
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest
167 
63 
436 
268 
Net Income (Loss) Attributable to Noncontrolling Interest
0 
0 
0 
0 
Net Income (Loss) Attributable to Parent
167 
63 
436 
268 
Wholesale Banking [Member]
 
 
 
 
Average total assets
66,552 
64,605 
66,307 
63,831 
Average total liabilities
46,977 
45,621 
46,904 
46,538 
Average total equity
0 
0 
0 
0 
Net, interest income
401 
386 
1,190 
1,133 
FTE adjustment
31 
29 
90 
90 
Segment Reporting Information Net Interest Income Including Fully Taxable Equivalent Adjustment
432 1
415 1
1,280 1
1,223 1
Provision for Loan, Lease, and Other Losses
21 
69 2
67 2
217 2
Segment Reporting Information Net Interest Income After Provision For Credit Losses and Taxable Equivalent Adjustment
411 
346 
1,213 
1,006 
Total noninterest income
294 
354 
934 
1,020 
Noninterest Expense
428 
518 
1,224 
1,429 
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest
277 
182 
923 
597 
Income Tax Expense (Benefit) Including Fully Taxable Equivalent Adjustment Reversal
81 
47 3
281 3
159 3
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest
196 
135 
642 
438 
Net Income (Loss) Attributable to Noncontrolling Interest
2 
7 
7 
14 
Net Income (Loss) Attributable to Parent
194 
128 
635 
424 
Mortgage Banking
 
 
 
 
Average total assets
33,025 
35,372 
32,973 
35,464 
Average total liabilities
3,740 
4,890 
4,166 
4,357 
Average total equity
0 
0 
0 
0 
Net, interest income
140 
129 
409 
387 
FTE adjustment
0 
0 
0 
0 
Segment Reporting Information Net Interest Income Including Fully Taxable Equivalent Adjustment
140 1
129 1
409 1
387 1
Provision for Loan, Lease, and Other Losses
45 
270 2
197 2
602 2
Segment Reporting Information Net Interest Income After Provision For Credit Losses and Taxable Equivalent Adjustment
95 
(141)
212 
(215)
Total noninterest income
(1)
(75)
328 
261 
Noninterest Expense
638 
368 
1,247 
1,045 
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest
(544)
(584)
(707)
(999)
Income Tax Expense (Benefit) Including Fully Taxable Equivalent Adjustment Reversal
(139)
(200)3
(206)3
(369)3
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest
(405)
(384)
(501)
(630)
Net Income (Loss) Attributable to Noncontrolling Interest
0 
0 
0 
0 
Net Income (Loss) Attributable to Parent
(405)
(384)
(501)
(630)
Corporate Other
 
 
 
 
Average total assets
25,646 
26,667 
26,264 
28,932 
Average total liabilities
15,362 
19,933 
14,960 
20,764 
Average total equity
0 
0 
0 
0 
Net, interest income
74 
80 
231 
301 
FTE adjustment
1 
1 
2 
3 
Segment Reporting Information Net Interest Income Including Fully Taxable Equivalent Adjustment
75 1
81 1
233 1
304 1
Provision for Loan, Lease, and Other Losses
0 
0 2
0 2
0 2
Segment Reporting Information Net Interest Income After Provision For Credit Losses and Taxable Equivalent Adjustment
75 
81 
233 
304 
Total noninterest income
11 
1,910 
41 
1,970 
Noninterest Expense
(9)
66 
(41)
61 
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest
95 
1,925 
315 
2,213 
Income Tax Expense (Benefit) Including Fully Taxable Equivalent Adjustment Reversal
(166)
675 3
(98)3
776 3
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest
261 
1,250 
413 
1,437 
Net Income (Loss) Attributable to Noncontrolling Interest
5 
3 
9 
7 
Net Income (Loss) Attributable to Parent
256 
1,247 
404 
1,430 
Reconciling Items
 
 
 
 
Average total assets
1,083 
1,585 
1,361 
1,423 
Average total liabilities
(12)
112 
(87)
(179)
Average total equity
21,027 
20,619 
21,138 
20,450 
Net, interest income
(60)
(15)
(140)
(22)
FTE adjustment
0 
0 
1 
0 
Segment Reporting Information Net Interest Income Including Fully Taxable Equivalent Adjustment
(60)1
(15)1
(139)1
(22)1
Provision for Loan, Lease, and Other Losses
(50)
(61)2
(97)2
(216)2
Segment Reporting Information Net Interest Income After Provision For Credit Losses and Taxable Equivalent Adjustment
(10)
46 
(42)
194 
Total noninterest income
(3)
(3)
(9)
(8)
Noninterest Expense
(3)
1 
(9)
(7)
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest
(10)
42 
(42)
193 
Income Tax Expense (Benefit) Including Fully Taxable Equivalent Adjustment Reversal
13 
20 3
14 3
82 3
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest
(23)
22 
(56)
111 
Net Income (Loss) Attributable to Noncontrolling Interest
0 
(1)
0 
1 
Net Income (Loss) Attributable to Parent
$ (23)
$ 23 
$ (56)
$ 110 
Accumulated Other Comprehensive Income (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Accumulated Other Comprehensive Income Loss Before Tax [Abstract]
 
 
 
 
AOCI, beginning balance
$ (432)
$ 2,733 
$ 506 
$ 2,744 
Unrealized net gain on securities
(18)
(302)
(736)
29 
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, before Tax
0 
(1,941)1
(2)
(1,973)1
Unrealized net gain on derivatives
60 
433 
15 
439 
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, before Tax
(101)
(118)
(315)
(390)
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax
7 
8 
48 
(36)
AOCI, ending balance
(484)
813 
(484)
813 
Accumulated Other Comprehensive Income Loss Tax [Abstract]
 
 
 
 
AOCI, beginning balance
149 
(990)
(197)
(995)
Unrealized net gain on securities
7 
105 
271 
(13)
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax
0 
690 1
1 
701 1
Unrealized net gain on derivatives
(22)
(154)
(5)
(159)
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Tax
37 
43 
116 
144 
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax
(3)
(3)
(18)
13 
AOCI, ending balance
168 
(309)
168 
(309)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
 
 
 
 
AOCI, beginning balance
(283)
1,743 
309 
1,749 
Unrealized net gain on securities
(11)
(197)
(465)
16 
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax
0 
(1,251)1
(1)
(1,272)1
Unrealized net gain on derivatives
38 
279 
10 
280 
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax
(64)
(75)
(199)
(246)
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax
4 
5 
30 
(23)
AOCI, ending balance
$ (316)
$ 504 
$ (316)
$ 504 
Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income (parenthetical) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2012
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
Gain (Loss) on Contract Termination
$ 305 
$ 305 
Accumulated Other Comprehensive Income Reclassifications out of AOCI (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, before Tax
$ 0 
$ (1,941)1
$ (2)
$ (1,973)1
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax
0 
690 1
1 
701 1
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax
0 
(1,251)1
(1)
(1,272)1
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Tax
37 
43 
116 
144 
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax
(64)
(75)
(199)
(246)
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax
7 
8 
48 
(36)
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax
(3)
(3)
(18)
13 
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax
4 
5 
30 
(23)
Net securities gains [Member]
 
 
 
 
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, before Tax
0 
(1,941)
(2)
(1,973)
Interest Income, Interest and Fees on Loans
 
 
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net
(101)
(118)
(315)
(390)
provision for income taxes [Member]
 
 
 
 
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax
0 
690 
1 
701 
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Tax
37 
43 
116 
144 
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax
(3)
(3)
(18)
13 
employee benefits [Member]
 
 
 
 
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax
6 
9 
19 
21 
Other Assets And Liabilities, Net [Member]
 
 
 
 
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax
$ 1 2
$ (1)2
$ 29 2
$ (57)2