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Investments (Tables)
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3 Months Ended |
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Mar. 31, 2015
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| Investments, Debt and Equity Securities [Abstract] |
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| Schedule of Investment Securities |
The Company’s investment securities consist of the following (dollars in millions): | | | | | | | | | | March 31,
2015 | | December 31,
2014 | U.S. Treasury securities(1) | $ | 608 |
| | $ | 1,330 |
| U.S. government agency securities | 628 |
| | 1,033 |
| States and political subdivisions of states | 10 |
| | 10 |
| Residential mortgage-backed securities - Agency(2) | 1,532 |
| | 1,576 |
| Total investment securities | $ | 2,778 |
| | $ | 3,949 |
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| | (1) | Includes $17 million and $16 million of U.S. Treasury securities pledged as swap collateral in lieu of cash as of March 31, 2015 and December 31, 2014, respectively. |
| | (2) | Consists of residential mortgage-backed securities issued by Fannie Mae, Freddie Mac and Ginnie Mae. |
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| Schedule of Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses and Fair Value |
The amortized cost, gross unrealized gains and losses, and fair value of available-for-sale and held-to-maturity investment securities are as follows (dollars in millions): | | | | | | | | | | | | | | | | | | Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value | At March 31, 2015 | | | | | | | | Available-for-Sale Investment Securities(1) | | | | | | | | U.S. Treasury securities | $ | 600 |
| | $ | 7 |
| | $ | — |
| | $ | 607 |
| U.S. government agency securities | 620 |
| | 8 |
| | — |
| | 628 |
| Residential mortgage-backed securities - Agency | 1,406 |
| | 22 |
| | — |
| | 1,428 |
| Total available-for-sale investment securities | $ | 2,626 |
| | $ | 37 |
| | $ | — |
| | $ | 2,663 |
| Held-to-Maturity Investment Securities(2) | | | | | | | | U.S. Treasury securities(3) | $ | 1 |
| | $ | — |
| | $ | — |
| | $ | 1 |
| States and political subdivisions of states | 10 |
| | — |
| | — |
| | 10 |
| Residential mortgage-backed securities - Agency(4) | 104 |
| | 2 |
| | — |
| | 106 |
| Total held-to-maturity investment securities | $ | 115 |
| | $ | 2 |
| | $ | — |
| | $ | 117 |
| | | | | | | | | At December 31, 2014 | | | | | | | | Available-for-Sale Investment Securities(1) | | | | | | | | U.S. Treasury securities | $ | 1,317 |
| | $ | 12 |
| | $ | — |
| | $ | 1,329 |
| U.S. government agency securities | 1,021 |
| | 12 |
| | — |
| | 1,033 |
| Residential mortgage-backed securities - Agency | 1,473 |
| | 13 |
| | (1 | ) | | 1,485 |
| Total available-for-sale investment securities | $ | 3,811 |
| | $ | 37 |
| | $ | (1 | ) | | $ | 3,847 |
| Held-to-Maturity Investment Securities(2) | | | | | | | | U.S. Treasury securities(3) | $ | 1 |
| | $ | — |
| | $ | — |
| | $ | 1 |
| States and political subdivisions of states | 10 |
| | — |
| | — |
| | 10 |
| Residential mortgage-backed securities - Agency(4) | 91 |
| | 2 |
| | — |
| | 93 |
| Total held-to-maturity investment securities | $ | 102 |
| | $ | 2 |
| | $ | — |
| | $ | 104 |
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| | (1) | Available-for-sale investment securities are reported at fair value. |
| | (2) | Held-to-maturity investment securities are reported at amortized cost. |
| | (3) | Amount represents securities pledged as collateral to a government-related merchant for which transaction settlement occurs beyond the normal 24-hour period. |
| | (4) | Amounts represent residential mortgage-backed securities that were classified as held-to-maturity as they were entered into as a part of the Company's community reinvestment initiatives. |
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| Schedule of Fair Value of Securities in a Continuous Unrealized Loss Position for Less Than 12 Months and More Than 12 Months |
The following table provides information about investment securities with aggregate gross unrealized losses and the length of time that individual investment securities have been in a continuous unrealized loss position (dollars in millions). Gross unrealized losses related to investment securities were not material for the three months ended March 31, 2015. | | | | | | | | | | | | | | | | | | | | | Number of Securities in a Loss Position | | Less than 12 months | | More than 12 months | | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | At December 31, 2014 | | | | | | | | | | Available-for-Sale Investment Securities | | | | | | | | | | Residential mortgage-backed securities - Agency | 8 |
| | $ | 97 |
| | $ | — |
| | $ | 225 |
| | $ | (1 | ) | | | | | | | | | | |
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| Schedule of Proceeds, Recognized Gains and Losses and Net Unrealized Gains and Losses |
The following table provides information about proceeds from sales, recognized gains and losses and net unrealized gains and losses on available-for-sale securities (dollars in millions): | | | | | | | | | | For the Three Months Ended March 31, | | 2015 | | 2014 | Proceeds from the sales of available-for-sale investment securities | $ | 899 |
| | $ | 1,220 |
| Gain on sales of available-for-sale investment securities | $ | 8 |
| | $ | 4 |
| Net unrealized gain recorded in other comprehensive income, before-tax | $ | — |
| | $ | 3 |
| Net unrealized gain recorded in other comprehensive income, after-tax | $ | — |
| | $ | 2 |
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| Schedule of Maturities of Available-for-Sale Debt Securities and Held-to-Maturity Debt Securities |
Maturities of available-for-sale debt securities and held-to-maturity debt securities are provided in the table below (dollars in millions): | | | | | | | | | | | | | | | | | | | | | | One Year or Less | | After One Year Through Five Years | | After Five Years Through Ten Years | | After Ten Years | | Total | At March 31, 2015 | | | | | | | | | | Available-for-Sale—Amortized Cost | | | | | | | | | | U.S. Treasury securities | $ | 100 |
| | $ | 500 |
| | $ | — |
| | $ | — |
| | $ | 600 |
| U.S. government agency securities | 125 |
| | 495 |
| | — |
| | — |
| | 620 |
| Residential mortgage-backed securities - Agency | — |
| | — |
| | 465 |
| | 941 |
| | 1,406 |
| Total available-for-sale investment securities | $ | 225 |
| | $ | 995 |
| | $ | 465 |
| | $ | 941 |
| | $ | 2,626 |
| Held-to-Maturity—Amortized Cost | | | | | | | | | | U.S. Treasury securities | $ | 1 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 1 |
| State and political subdivisions of states | — |
| | — |
| | — |
| | 10 |
| | 10 |
| Residential mortgage-backed securities - Agency | — |
| | — |
| | — |
| | 104 |
| | 104 |
| Total held-to-maturity investment securities | $ | 1 |
| | $ | — |
| | $ | — |
| | $ | 114 |
| | $ | 115 |
| Available-for-Sale—Fair Values | | | | | | | | | | U.S. Treasury securities | $ | 101 |
| | $ | 506 |
| | $ | — |
| | $ | — |
| | $ | 607 |
| U.S. government agency securities | 126 |
| | 502 |
| | — |
| | — |
| | 628 |
| Residential mortgage-backed securities - Agency | — |
| | — |
| | 471 |
| | 957 |
| | 1,428 |
| Total available-for-sale investment securities | $ | 227 |
| | $ | 1,008 |
| | $ | 471 |
| | $ | 957 |
| | $ | 2,663 |
| Held-to-Maturity—Fair Values | | | | | | | | | | U.S. Treasury securities | $ | 1 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 1 |
| State and political subdivisions of states | — |
| | — |
| | — |
| | 10 |
| | 10 |
| Residential mortgage-backed securities - Agency | — |
| | — |
| | — |
| | 106 |
| | 106 |
| Total held-to-maturity investment securities | $ | 1 |
| | $ | — |
| | $ | — |
| | $ | 116 |
| | $ | 117 |
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