Loans Held-for-Investment (Tables)
|
6 Months Ended |
12 Months Ended |
Jun. 30, 2016 |
Dec. 31, 2015 |
| Receivables [Abstract] |
|
|
| Schedule of Loans Held-for-investment |
Loans held-for-investment are summarized as follows: | | | | | | | | | | June 30,
2016 | | December 31,
2015 | | (Dollars in millions) | Consumer loans | | | | Residential first mortgage | $ | 2,075 |
| | $ | 3,100 |
| Second mortgage | 127 |
| | 135 |
| HELOC | 346 |
| | 384 |
| Other | 32 |
| | 31 |
| Total consumer loans | 2,580 |
| | 3,650 |
| Commercial loans | | | | Commercial real estate (1) | 976 |
| | 814 |
| Commercial and industrial | 615 |
| | 552 |
| Warehouse lending | 1,651 |
| | 1,336 |
| Total commercial loans | 3,242 |
| | 2,702 |
| Total loans held-for-investment | $ | 5,822 |
| | $ | 6,352 |
|
| | (1) | Includes $221 million and $188 million, respectively, of commercial owner occupied real estate loans at June 30, 2016 and December 31, 2015. |
|
Loans held-for-investment are summarized as follows. | | | | | | | | | | December 31, 2015 | | December 31, 2014 | | (Dollars in millions) | Consumer loans | | Residential first mortgage | $ | 3,100 |
| | $ | 2,193 |
| Second mortgage | 135 |
| | 149 |
| HELOC | 384 |
| | 257 |
| Other | 31 |
| | 31 |
| Total consumer loans | 3,650 |
| | 2,630 |
| Commercial loans | | | | Commercial real estate | 814 |
| | 620 |
| Commercial and industrial | 552 |
| | 429 |
| Warehouse lending | 1,336 |
| | 769 |
| Total commercial loans | 2,702 |
| | 1,818 |
| Total consumer and commercial loans held-for-investment | 6,352 |
| | 4,448 |
|
|
| Allowance for Loan Losses |
The allowance for loan losses by class of loan are summarized in the following table: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Residential First Mortgage (1) | | Second Mortgage | | HELOC | | Other Consumer | | Commercial Real Estate | | Commercial and Industrial | | Warehouse Lending | | Total | | (Dollars in millions) | Three Months Ended June 30, 2016 | | | | | | | | | | | | | | | | Beginning balance allowance for loan losses | $ | 95 |
| | $ | 10 |
| | $ | 20 |
| | $ | 2 |
| | $ | 19 |
| | $ | 10 |
| | $ | 6 |
| | $ | 162 |
| Charge-offs (2) | (8 | ) | | (1 | ) | | — |
| | (1 | ) | | — |
| | — |
| | — |
| | (10 | ) | Recoveries | 1 |
| | 1 |
| | (1 | ) | | — |
| | — |
| | — |
| | — |
| | 1 |
| (Benefit) provision | (7 | ) | | — |
| | 1 |
| | — |
| | — |
| | 1 |
| | 2 |
| | (3 | ) | Ending balance allowance for loan losses | $ | 81 |
| | $ | 10 |
| | $ | 20 |
| | $ | 1 |
| | $ | 19 |
| | $ | 11 |
| | $ | 8 |
| | $ | 150 |
| Three Months Ended June 30, 2015 | | | | | | | | | | | | | | | | Beginning balance allowance for loan losses | $ | 188 |
| | $ | 12 |
| | $ | 21 |
| | $ | — |
| | $ | 16 |
| | $ | 12 |
| | $ | 4 |
| | $ | 253 |
| Charge-offs (2) | (19 | ) | | (1 | ) | | — |
| | (1 | ) | | — |
| | — |
| | — |
| | (21 | ) | Recoveries | 1 |
| | 1 |
| | — |
| | 1 |
| | — |
| | — |
| | — |
| | 3 |
| (Benefit) provision | (19 | ) | | 2 |
| | 4 |
| | 1 |
| | (1 | ) | | — |
| | — |
| | (13 | ) | Ending balance allowance for loan losses | $ | 151 |
| | $ | 14 |
|
| $ | 25 |
|
| $ | 1 |
|
| $ | 15 |
|
| $ | 12 |
|
| $ | 4 |
|
| $ | 222 |
| | | | | | | | | | | | | | | | | Six Months Ended June 30, 2016 | | | | | | | | | | | | | | | | Beginning balance allowance for loan losses | $ | 116 |
| | $ | 11 |
| | $ | 21 |
| | $ | 2 |
| | $ | 18 |
| | $ | 13 |
| | $ | 6 |
| | $ | 187 |
| Charge-offs (2) | (19 | ) | | (2 | ) | | (1 | ) | | (2 | ) | | — |
| | — |
| | — |
| | (24 | ) | Recoveries | 1 |
| | 1 |
| | — |
| | 1 |
| | — |
| | — |
| | — |
| | 3 |
| Provision (benefit) | (17 | ) | | — |
| | — |
| | — |
| | 1 |
| | (2 | ) | | 2 |
| | (16 | ) | Ending balance allowance for loan losses | $ | 81 |
| | $ | 10 |
| | $ | 20 |
| | $ | 1 |
| | $ | 19 |
| | $ | 11 |
| | $ | 8 |
| | $ | 150 |
| Six Months Ended June 30, 2015 | | | | | | | | | | | | | | | | Beginning balance allowance for loan losses | $ | 234 |
| | $ | 12 |
| | $ | 19 |
| | $ | 1 |
| | $ | 17 |
| | $ | 11 |
| | $ | 3 |
| | $ | 297 |
| Charge-offs (2) | (60 | ) | | (2 | ) | | (1 | ) | | (1 | ) | | — |
| | — |
| | — |
| | (64 | ) | Recoveries | 2 |
| | 1 |
| | — |
| | 1 |
| | 2 |
| | — |
| | — |
| | 6 |
| Provision (benefit) | (25 | ) | | 3 |
| | 7 |
| | — |
| | (4 | ) | | 1 |
| | 1 |
| | (17 | ) | Ending balance allowance for loan losses | $ | 151 |
| | $ | 14 |
| | $ | 25 |
| | $ | 1 |
| | $ | 15 |
| | $ | 12 |
| | $ | 4 |
| | $ | 222 |
|
| | (1) | Includes allowance and charge-offs related to loans with government guarantees. |
| | (2) | Includes charge-offs of $2 million and $15 million related to the sale or transfer of loans during the three months ended June 30, 2016 and June 30, 2015, respectively, and $8 million and $51 million related to the sale of loans during the six months ended June 30, 2016 and June 30, 2015, respectively. Also includes charge-offs related to loans with government guarantees of $4 million and $7 million during the three and six months ended June 30, 2016, respectively. |
The loans held-for-investment and allowance for loan losses by class of loan is summarized in the following table: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Residential First Mortgage (1) | | Second Mortgage | | HELOC | | Other Consumer | | Commercial Real Estate | | Commercial and Industrial | | Warehouse Lending | | Total | | (Dollars in millions) | June 30, 2016 | | | | | | | | | | | | | | | | Loans held-for-investment | | | | | | | | | | | | | | | | Individually evaluated | $ | 43 |
| | $ | 27 |
| | $ | 6 |
| | $ | — |
| | $ | — |
| | $ | 1 |
| | $ | — |
| | $ | 77 |
| Collectively evaluated (2) | 2,027 |
| | 61 |
| | 296 |
| | 32 |
| | 976 |
| | 614 |
| | 1,651 |
| | 5,657 |
| Total loans | $ | 2,070 |
| | $ | 88 |
|
| $ | 302 |
|
| $ | 32 |
|
| $ | 976 |
|
| $ | 615 |
|
| $ | 1,651 |
|
| $ | 5,734 |
| Allowance for loan losses | | | | | | | | | | | | | | | | Individually evaluated | $ | 7 |
| | $ | 6 |
| | $ | 3 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 16 |
| Collectively evaluated (2) | 74 |
| | 4 |
| | 17 |
| | 1 |
| | 19 |
| | 11 |
| | 8 |
| | 134 |
| Total allowance for loan losses | $ | 81 |
| | $ | 10 |
|
| $ | 20 |
|
| $ | 1 |
|
| $ | 19 |
|
| $ | 11 |
|
| $ | 8 |
|
| $ | 150 |
| | | | | | | | | | | | | | | | | December 31, 2015 | | | | | | | | | | | | | | | | Loans held-for-investment | | | | | | | | | | | | | | | | Individually evaluated | $ | 87 |
| | $ | 28 |
| | $ | 3 |
| | $ | — |
| | $ | — |
| | $ | 2 |
| | $ | — |
| | $ | 120 |
| Collectively evaluated (2) | 3,007 |
| | 65 |
| | 318 |
| | 31 |
| | 814 |
| | 550 |
| | 1,336 |
| | 6,121 |
| Total loans | $ | 3,094 |
| | $ | 93 |
| | $ | 321 |
| | $ | 31 |
| | $ | 814 |
| | $ | 552 |
| | $ | 1,336 |
| | $ | 6,241 |
| Allowance for loan losses | | | | | | | | | | | | | | | | Individually evaluated | $ | 12 |
| | $ | 6 |
| | $ | 1 |
| | $ | 1 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 20 |
| Collectively evaluated (2) | 104 |
| | 5 |
| | 20 |
| | 1 |
| | 18 |
| | 13 |
| | 6 |
| | 167 |
| Total allowance for loan losses | $ | 116 |
| | $ | 11 |
| | $ | 21 |
| | $ | 2 |
| | $ | 18 |
| | $ | 13 |
| | $ | 6 |
| | $ | 187 |
|
| | (1) | Includes allowance related to loans with government guarantees. |
| | (2) | Excludes loans carried under the fair value option. |
|
The allowance for loan losses by class of loan and evaluation type are summarized in the following tables. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Residential First Mortgage | | Second Mortgage | | HELOC | | Other Consumer | | Commercial Real Estate | | Commercial and Industrial | | Warehouse Lending | | Total | Year Ended December 31, 2015 | (Dollars in millions) | Beginning balance allowance for loan losses | $ | 234 |
| | $ | 12 |
| | $ | 19 |
| | $ | 1 |
| | $ | 17 |
| | $ | 11 |
| | $ | 3 |
| | $ | 297 |
| Charge-offs | (87 | ) | | (4 | ) | | (3 | ) | | (4 | ) | | — |
| | (3 | ) | | — |
| | (101 | ) | Recoveries | 3 |
| | 2 |
| | — |
| | 3 |
| | 2 |
| | — |
| | — |
| | 10 |
| Provision | (34 | ) | | 1 |
| | 5 |
| | 2 |
| | (1 | ) | | 5 |
| | 3 |
| | (19 | ) | Ending balance allowance for loan losses | $ | 116 |
| | $ | 11 |
| | $ | 21 |
| | $ | 2 |
| | $ | 18 |
| | $ | 13 |
| | $ | 6 |
| | $ | 187 |
| Year Ended December 31, 2014 | | | | | | | | | | | | | | | | Beginning balance allowance for loan losses | $ | 162 |
| | $ | 12 |
| | $ | 8 |
| | $ | 2 |
| | $ | 19 |
| | $ | 3 |
| | $ | 1 |
| | $ | 207 |
| Charge-offs | (38 | ) | | (3 | ) | | (6 | ) | | (2 | ) | | (3 | ) | | — |
| | — |
| | (52 | ) | Recoveries | 3 |
| | 1 |
| | — |
| | 3 |
| | 3 |
| | — |
| | — |
| | 10 |
| Provision | 107 |
| | 2 |
| | 17 |
| | (2 | ) | | (2 | ) | | 8 |
| | 2 |
| | 132 |
| Ending balance allowance for loan losses | $ | 234 |
| | $ | 12 |
| | $ | 19 |
| | $ | 1 |
| | $ | 17 |
| | $ | 11 |
| | $ | 3 |
| | $ | 297 |
| Year Ended December 31, 2013 | | | | | | | | | | | | | | | | Beginning balance allowance for loan losses | $ | 220 |
| | $ | 20 |
| | $ | 18 |
| | $ | 2 |
| | $ | 41 |
| | $ | 3 |
| | $ | 1 |
| | $ | 305 |
| Charge-offs | (133 | ) | | (6 | ) | | (5 | ) | | (4 | ) | | (47 | ) | | (2 | ) | | — |
| | (197 | ) | Recoveries | 15 |
| | 1 |
| | 1 |
| | 2 |
| | 10 |
| | — |
| | — |
| | 29 |
| Provision | 60 |
| | (3 | ) | | (6 | ) | | 2 |
| | 15 |
| | 2 |
| | — |
| | 70 |
| Ending balance allowance for loan losses | $ | 162 |
| | $ | 12 |
| | $ | 8 |
| | $ | 2 |
| | $ | 19 |
| | $ | 3 |
| | $ | 1 |
| | $ | 207 |
| | Residential First Mortgage | | Second Mortgage | | HELOC | | Other Consumer | | Commercial Real Estate | | Commercial and Industrial | | Warehouse Lending | | Total | December 31, 2015 | | | | | | | | | | | | | | | | Loans held-for-investment | | | | | | | | | | | | | | | | Individually evaluated | $ | 87 |
| | $ | 28 |
| | $ | 3 |
| | $ | — |
| | $ | — |
| | $ | 2 |
| | $ | — |
| | $ | 120 |
| Collectively evaluated (1) | 3,007 |
| | 65 |
| | 318 |
| | 31 |
| | 814 |
| | 550 |
| | 1,336 |
| | 6,121 |
| Total loans | $ | 3,094 |
| | $ | 93 |
| | $ | 321 |
| | $ | 31 |
| | $ | 814 |
| | $ | 552 |
| | $ | 1,336 |
| | $ | 6,241 |
| Allowance for loan losses | | | | | | | | | | | | | | | | Individually evaluated | $ | 12 |
| | $ | 6 |
| | $ | 1 |
| | $ | 1 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 20 |
| Collectively evaluated (1) | 104 |
| | 5 |
| | 20 |
| | 1 |
| | 18 |
| | 13 |
| | 6 |
| | 167 |
| Total allowance for loan losses | $ | 116 |
| | $ | 11 |
| | $ | 21 |
| | $ | 2 |
| | $ | 18 |
| | $ | 13 |
| | $ | 6 |
| | $ | 187 |
| December 31, 2014 | | | | | | | | | | | | | | | | Loans held-for-investment | | | | | | | | | | | | | | | | Individually evaluated | $ | 385 |
| | $ | 31 |
| | $ | 1 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 417 |
| Collectively evaluated (1) | 1,782 |
| | 65 |
| | 124 |
| | 31 |
| | 620 |
| | 429 |
| | 769 |
| | 3,820 |
| Total loans | $ | 2,167 |
| | $ | 96 |
| | $ | 125 |
| | $ | 31 |
| | $ | 620 |
| | $ | 429 |
| | $ | 769 |
| | $ | 4,237 |
| Allowance for loan losses | | | | | | | | | | | | | | | | Individually evaluated | $ | 82 |
| | $ | 5 |
| | $ | 1 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 88 |
| Collectively evaluated (1) | 152 |
| | 7 |
| | 18 |
| | 1 |
| | 17 |
| | 11 |
| | 3 |
| | 209 |
| Total allowance for loan losses | $ | 234 |
| | $ | 12 |
| | $ | 19 |
| | $ | 1 |
| | $ | 17 |
| | $ | 11 |
| | $ | 3 |
| | $ | 297 |
|
| | (1) | Excludes loans carried under the fair value option. |
|
| Past Due Loans |
The following table sets forth the loans held-for-investment aging analysis as of June 30, 2016 and December 31, 2015, of past due and current loans: | | | | | | | | | | | | | | | | | | | | | | | | | | 30-59 Days Past Due | | 60-89 Days Past Due | | 90 Days or Greater Past Due (1) | | Total Past Due | | Current | | Total Investment Loans | | (Dollars in millions) | June 30, 2016 | | | | | | | | | | | | Consumer loans | | | | | | | | | | | | Residential first mortgage | $ | 3 |
| | $ | 1 |
| | $ | 32 |
| | $ | 36 |
| | $ | 2,039 |
| | $ | 2,075 |
| Second mortgage | — |
| | — |
| | 3 |
| | 3 |
| | 124 |
| | 127 |
| HELOC | 2 |
| | 1 |
| | 9 |
| | 12 |
| | 334 |
| | 346 |
| Other | — |
| | — |
| | — |
| | — |
| | 32 |
| | 32 |
| Total consumer loans | 5 |
| | 2 |
| | 44 |
| | 51 |
| | 2,529 |
| | 2,580 |
| Commercial loans | | | | | | | | | | | | Commercial real estate | — |
| | — |
| | — |
| | — |
| | 976 |
| | 976 |
| Commercial and industrial | — |
| | — |
| | — |
| | — |
| | 615 |
| | 615 |
| Warehouse lending | — |
| | — |
| | — |
| | — |
| | 1,651 |
| | 1,651 |
| Total commercial loans | — |
| | — |
| | — |
| | — |
| | 3,242 |
| | 3,242 |
| Total loans (2) | $ | 5 |
| | $ | 2 |
| | $ | 44 |
| | $ | 51 |
| | $ | 5,771 |
| | $ | 5,822 |
| December 31, 2015 | | | | | | | | | | | | Consumer loans | | | | | | | | | | | | Residential first mortgage | $ | 7 |
| | $ | 3 |
| | $ | 53 |
| | $ | 63 |
| | $ | 3,037 |
| | $ | 3,100 |
| Second mortgage | — |
| | — |
| | 2 |
| | 2 |
| | 133 |
| | 135 |
| HELOC | 2 |
| | 1 |
| | 9 |
| | 12 |
| | 372 |
| | 384 |
| Other | 1 |
| | — |
| | — |
| | 1 |
| | 30 |
| | 31 |
| Total consumer loans | 10 |
| | 4 |
| | 64 |
| | 78 |
| | 3,572 |
| | 3,650 |
| Commercial loans | | | | | | | | | | | | Commercial real estate | — |
| | — |
| | — |
| | — |
| | 814 |
| | 814 |
| Commercial and industrial | — |
| | — |
| | 2 |
| | 2 |
| | 550 |
| | 552 |
| Warehouse lending | — |
| | — |
| | — |
| | — |
| | 1,336 |
| | 1,336 |
| Total commercial loans | — |
| | — |
| | 2 |
| | 2 |
| | 2,700 |
| | 2,702 |
| Total loans (2) | $ | 10 |
| | $ | 4 |
| | $ | 66 |
| | $ | 80 |
| | $ | 6,272 |
| | $ | 6,352 |
|
| | (1) | Includes loans that are less than 90 days past due, which have been placed on nonaccrual. |
| | (2) | Includes $10 million of loans 90 days or greater past due, accounted for under the fair value option at both June 30, 2016 and December 31, 2015. |
|
The following table sets forth the loans held-for-investment aging analysis as of December 31, 2015 and December 31, 2014, of past due and current loans. | | | | | | | | | | | | | | | | | | | | | | | | | | 30-59 Days Past Due | | 60-89 Days Past Due | | 90 Days or Greater Past Due (1) | | Total Past Due | | Current | | Total Investment Loans | | (Dollars in millions) | December 31, 2015 | | | | | | | | | | | | Consumer loans | | | | | | | | | | | | Residential first mortgage | $ | 7 |
| | $ | 3 |
| | $ | 53 |
| | $ | 63 |
| | $ | 3,037 |
| | $ | 3,100 |
| Second mortgage | — |
| | — |
| | 2 |
| | 2 |
| | 133 |
| | 135 |
| HELOC | 2 |
| | 1 |
| | 9 |
| | 12 |
| | 372 |
| | 384 |
| Other | 1 |
| | — |
| | — |
| | 1 |
| | 30 |
| | 31 |
| Total consumer loans | 10 |
| | 4 |
| | 64 |
| | 78 |
| | 3,572 |
| | 3,650 |
| Commercial loans | | | | | | | | | | | | Commercial real estate | — |
| | — |
| | — |
| | — |
| | 814 |
| | 814 |
| Commercial and industrial | — |
| | — |
| | 2 |
| | 2 |
| | 550 |
| | 552 |
| Warehouse lending | — |
| | — |
| | — |
| | — |
| | 1,336 |
| | 1,336 |
| Total commercial loans | — |
| | — |
| | 2 |
| | 2 |
| | 2,700 |
| | 2,702 |
| Total loans (2) | $ | 10 |
| | $ | 4 |
| | $ | 66 |
| | $ | 80 |
| | $ | 6,272 |
| | $ | 6,352 |
| December 31, 2014 | | | | | | | | | | | | Consumer loans | | | | | | | | | | | | Residential first mortgage | $ | 29 |
| | $ | 8 |
| | $ | 115 |
| | $ | 152 |
| | $ | 2,041 |
| | $ | 2,193 |
| Second mortgage | 1 |
| | 1 |
| | 2 |
| | 4 |
| | 145 |
| | 149 |
| HELOC | 4 |
| | 1 |
| | 3 |
| | 8 |
| | 249 |
| | 257 |
| Other | — |
| | — |
| | — |
| | — |
| | 31 |
| | 31 |
| Total consumer loans | 34 |
| | 10 |
| | 120 |
| | 164 |
| | 2,466 |
| | 2,630 |
| Commercial loans | | | | | | | | | | | | Commercial real estate | — |
| | — |
| | — |
| | — |
| | 620 |
| | 620 |
| Commercial and industrial | — |
| | — |
| | — |
| | — |
| | 429 |
| | 429 |
| Warehouse lending | — |
| | — |
| | — |
| | — |
| | 769 |
| | 769 |
| Total commercial loans | — |
| | — |
| | — |
| | — |
| | 1,818 |
| | 1,818 |
| Total loans (2) | $ | 34 |
| | $ | 10 |
| | $ | 120 |
| | $ | 164 |
| | $ | 4,284 |
| | $ | 4,448 |
|
| | (1) | Includes performing nonaccrual loans that are less than 90 days delinquent and for which interest cannot be accrued. |
| | (2) | Includes $10 million and $5 million of loans 90 days or greater past due accounted for under the fair value option at December 31, 2015 and 2014, respectively. |
|
| Troubled Debt Restructurings |
The following table provides a summary of newly modified TDRs during the three and six months ended June 30, 2016 and 2015. | | | | | | | | | | | | | | | | | New TDRs | | Number of Accounts | | Pre-Modification Unpaid Principal Balance | | Post-Modification Unpaid Principal Balance (1) | | Increase in Allowance at Modification | Three Months Ended June 30, 2016 | | | (Dollars in millions) | Residential first mortgages | 3 |
| | $ | 1 |
| | $ | 1 |
| | $ | — |
| Second mortgages | 5 |
| | — |
| | — |
| | — |
| HELOC (2)(3) | 20 |
| | 2 |
| | 2 |
| | — |
| Total TDR loans | 28 |
| | $ | 3 |
|
| $ | 3 |
| | $ | — |
| | | | | | | | | Three Months Ended June 30, 2015 | | | | Residential first mortgages | 77 |
| | $ | 23 |
| | $ | 22 |
| | $ | (2 | ) | Second mortgages | 35 |
| | 1 |
| | 1 |
| | — |
| HELOC (2) | 122 |
| | 8 |
| | 7 |
| | — |
| Other consumer | 3 |
| | — |
| | — |
| | — |
| Total TDR loans | 237 |
| | $ | 32 |
| | $ | 30 |
| | $ | (2 | ) | | | | | | | | | Six Months Ended June 30, 2016 |
| | | | | | | Residential first mortgages | 16 |
| | $ | 3 |
| | $ | 4 |
| | $ | — |
| Second mortgages | 26 |
| | 1 |
| | 1 |
| | — |
| HELOC (2)(3) | 85 |
| | 6 |
| | 5 |
| | — |
| Commercial and industrial | 1 |
| | 2 |
| | 1 |
| | — |
| Total TDR loans | 128 |
| | $ | 12 |
| | $ | 11 |
| | $ | — |
| | | | | | | | | Six Months Ended June 30, 2015 |
| | | | | | | Residential first mortgages | 191 |
| | $ | 53 |
| | $ | 52 |
| | $ | (1 | ) | Second mortgages | 68 |
| | 3 |
| | 2 |
| | — |
| HELOC (2)(3) | 158 |
| | 8 |
| | 7 |
| | — |
| Other consumer | 3 |
| | — |
| | — |
| | — |
| Total TDR loans | 420 |
| | $ | 64 |
| | $ | 61 |
| | $ | (1 | ) |
| | (1) | Post-modification balances include past due amounts that are capitalized at modification date. |
| | (2) | HELOC post-modification unpaid principal balance reflects write downs. |
| | (3) | Includes loans carried at the fair value option. |
The following table provides a summary of TDR loans that were modified within the previous 12 months, which subsequently defaulted during the three and six months ended June 30, 2016 and 2015. All TDR classes within consumer and commercial loan portfolios are considered subsequently defaulted when they are greater than 90 days past due. | | | | | | | | | | | | | TDRs that were modified in the previous 12 months, which have subsequently defaulted | | Number of Accounts | | Unpaid Principal Balance | | Increase in Allowance at Subsequent Default | Three Months Ended June 30, 2015 | | | (Dollars in millions) | Second mortgages | 1 |
| | $ | — |
| | $ | — |
| Total TDR loans | 1 |
| | $ | — |
| | $ | — |
| Six Months Ended June 30, 2016 | | | | | | Residential first mortgages | 1 |
| | $ | — |
| | $ | — |
| HELOC (1) | 4 |
| | — |
| | — |
| Total TDR loans | 5 |
| | $ | — |
| | $ | — |
| Six Months Ended June 30, 2015 | | | | | | Second mortgages | 1 |
| | $ | — |
| | $ | — |
| Total TDR loans | 1 |
| | $ | — |
| | $ | — |
|
| | (1) | HELOC post-modification unpaid principal balance reflects write downs. |
The following table provides a summary of TDRs outstanding by type and performing status: | | | | | | | | | | | | | | TDRs | | Performing | | Nonperforming | | Total | June 30, 2016 | (Dollars in millions) | Consumer loans | | | | | | Residential first mortgage | $ | 21 |
| | $ | 13 |
| | $ | 34 |
| Second mortgage | 30 |
| | 1 |
| | 31 |
| HELOC | 21 |
| | 7 |
| | 28 |
| Total consumer loans | 72 |
| | 21 |
| | 93 |
| Commercial loans | | | | | | Commercial and industrial | 1 |
| | — |
| | 1 |
| Total commercial loans | 1 |
| | — |
| | 1 |
| Total TDRs (1)(2) | $ | 73 |
| | $ | 21 |
| | $ | 94 |
| | | | | | | December 31, 2015 | | | | | | Consumer loans | | | | | | Residential first mortgage | $ | 49 |
| | $ | 27 |
| | $ | 76 |
| Second mortgage | 32 |
| | 1 |
| | 33 |
| HELOC | 20 |
| | 7 |
| | 27 |
| Total TDRs (1)(2) | $ | 101 |
| | $ | 35 |
| | $ | 136 |
|
| | (1) | The allowance for loan losses on consumer TDR loans totaled $12 million and $15 million at June 30, 2016 and December 31, 2015, respectively. |
| | (2) | Includes $30 million and $32 million of TDR loans accounted for under the fair value option at June 30, 2016 and December 31, 2015, respectively. |
|
The following table provides a summary of TDRs by type and performing status. | | | | | | | | | | | | | | TDRs | | Performing | | Nonperforming | | Total | December 31, 2015 | (Dollars in millions) | Consumer loans (1) | | | | | | Residential first mortgage | $ | 49 |
| | $ | 27 |
| | $ | 76 |
| Second mortgage | 32 |
| | 1 |
| | 33 |
| HELOC | 20 |
| | 7 |
| | 27 |
| Total TDRs (2) | $ | 101 |
| | $ | 35 |
| | $ | 136 |
| | | | | | | December 31, 2014 | | Consumer loans (1) | | | | | | Residential first mortgage | $ | 306 |
| | $ | 44 |
| | $ | 350 |
| Second mortgage | 35 |
| | 1 |
| | 36 |
| HELOC | 20 |
| | 1 |
| | 21 |
| Total consumer loans | 361 |
| | 46 |
| | 407 |
| Commercial loans | | | | | | Commercial real estate | 1 |
| | — |
| | 1 |
| Total TDRs (2) | $ | 362 |
| | $ | 46 |
| | $ | 408 |
|
| | (1) | The allowance for loan losses on consumer TDR loans totaled $15 million and $81 million at December 31, 2015 and 2014, respectively. |
| | (2) | Includes $32 million and $30 million of TDR loans accounted for under the fair value option at December 31, 2015 and 2014, respectively. |
|
| Schedule of Troubled Debt Restructuring, Number of Accounts, Pre-Modification and Post-Modification Unpaid Principal Balances |
|
The following table provides a summary of newly modified TDRs and TDR loans in the past 12 months that have been subsequently defaulted during the years ended December 31, 2015, 2014 and 2013. All TDR classes within consumer and commercial loan portfolios are considered subsequently defaulted when greater that 90 days past due. | | | | | | | | | | | | | | | | | New TDRs | | Number of Accounts | | Pre-Modification Unpaid Principal Balance | | Post-Modification Unpaid Principal Balance (1) | | Increase (Decrease) in Allowance at Modification | Year Ended December 31, 2015 | (Dollars in millions) | Residential first mortgages | 325 |
| | $ | 81 |
| | $ | 80 |
| | $ | (2 | ) | Second mortgages | 97 |
| | 4 |
| | 3 |
| | — |
| HELOC (2) | 273 |
| | 17 |
| | 15 |
| | — |
| Other consumer | 3 |
| | — |
| | — |
| | — |
| Total TDR loans | 698 |
| | $ | 102 |
| | $ | 98 |
| | $ | (2 | ) | Year Ended December 31, 2014 | | | | | | | | Residential first mortgages | 165 |
| | $ | 48 |
| | $ | 47 |
| | $ | 3 |
| Second mortgages | 325 |
| | 11 |
| | 10 |
| | — |
| HELOC (2) | 30 |
| | 1 |
| | 1 |
| | — |
| Total TDR loans | 520 |
| | $ | 60 |
| | $ | 58 |
| | $ | 3 |
| Year Ended December 31, 2013 | | | | | | | | Residential first mortgages | 322 |
| | $ | 86 |
| | $ | 75 |
| | $ | 2 |
| Second mortgages (3) | 571 |
| | 22 |
| | 20 |
| | 1 |
| HELOC (2) (3) | 313 |
| | 27 |
| | 23 |
| | — |
| Commercial real estate | 5 |
| | 3 |
| | 3 |
| | — |
| Total TDR loans | 1,211 |
| | $ | 138 |
| | $ | 121 |
| | $ | 3 |
|
| | | | | | | | | | | | | TDRs that subsequently defaulted in previous 12 months (4) | | Number of Accounts | | Unpaid Principal Balance | | Increase (Decrease) in Allowance at Subsequent Default | Year Ended December 31, 2015 | (Dollars in millions) | Residential first mortgages | 3 |
| | $ | — |
| | $ | — |
| Second mortgages | 2 |
| | — |
| | — |
| HELOC (2) | 3 |
| | — |
| | — |
| Total TDR loans | 8 |
| | $ | — |
| | $ | — |
| Year Ended December 31, 2014 | | | | | | Residential first mortgages | 2 |
| | $ | — |
| | $ | — |
| Second mortgages | 18 |
| | — |
| | — |
| HELOC (2) | 5 |
| | — |
| | — |
| Total TDR loans | 25 |
| | $ | — |
| | $ | — |
| Year Ended December 31, 2013 | | | | | | Residential first mortgages | 26 |
| | $ | 6 |
| | $ | 1 |
| Second mortgages | 41 |
| | 1 |
| | 1 |
| Commercial real estate | 33 |
| | 1 |
| | — |
| Total TDR loans | 100 |
| | $ | 8 |
| | $ | 2 |
|
| | (1) | Post-modification balances include past due amounts that are capitalized at modification date. |
| | (2) | HELOC post-modification unpaid principal balance reflects write downs. |
| | (3) | New TDRs during the year ended December 31, 2013, include 463 loans for a total of $31 million of post modification unpaid principal balance second mortgage and HELOC loans carried at fair value. |
| | (4) | Subsequent default is defined as a payment re-defaulted within 12 months of the restructuring date. |
|
| Impaired Loans |
The following table presents individually evaluated impaired loans and the associated allowance: | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2016 | | December 31, 2015 | | Recorded Investment | | Unpaid Principal Balance | | Related Allowance | | Recorded Investment | | Unpaid Principal Balance | | Related Allowance | | (Dollars in millions) | With no related allowance recorded | | | | | | | | | | | | Consumer loans | | | | | | | | | | | | Residential first mortgage loans | $ | 2 |
| | $ | 2 |
| | $ | — |
| | $ | 20 |
| | $ | 20 |
| | $ | — |
| Commercial loans | | | | | | | | | | | | Commercial and industrial | 1 |
| | 1 |
| | — |
| | 5 |
| | 2 |
| | — |
| | $ | 3 |
| | $ | 3 |
| | $ | — |
| | $ | 25 |
| | $ | 22 |
| | $ | — |
| With an allowance recorded | | | | | | | | | | | | Consumer loans | | | | | | | | | | | | Residential first mortgage | $ | 41 |
| | $ | 41 |
| | $ | 6 |
| | $ | 65 |
| | $ | 67 |
| | $ | 12 |
| Second mortgage | 26 |
| | 27 |
| | 7 |
| | 28 |
| | 28 |
| | 6 |
| HELOC | 6 |
| | 6 |
| | 3 |
| | 3 |
| | 3 |
| | 1 |
| Other consumer | — |
| | — |
| | — |
| | — |
| | — |
| | 1 |
| | $ | 73 |
| | $ | 74 |
| | $ | 16 |
| | $ | 96 |
| | $ | 98 |
| | $ | 20 |
| Total | | | | | | | | | | | | Consumer loans | | | | | | | | | | | | Residential first mortgage | $ | 43 |
| | $ | 43 |
| | $ | 6 |
| | $ | 85 |
| | $ | 87 |
| | $ | 12 |
| Second mortgage | 26 |
| | 27 |
| | 7 |
| | 28 |
| | 28 |
| | 6 |
| HELOC | 6 |
| | 6 |
| | 3 |
| | 3 |
| | 3 |
| | 1 |
| Other consumer | — |
| | — |
| | — |
| | — |
| | — |
| | 1 |
| Commercial loans | | | | | | | | | | | | Commercial and industrial | 1 |
| | 1 |
| | — |
| | 5 |
| | 2 |
| | — |
| Total impaired loans | $ | 76 |
| | $ | 77 |
| | $ | 16 |
| | $ | 121 |
| | $ | 120 |
| | $ | 20 |
|
The following table presents average impaired loans and the interest income recognized: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | 2016 | | 2015 | | 2016 | | 2015 | | Average Recorded Investment | | Interest Income Recognized | | Average Recorded Investment | | Interest Income Recognized | | Average Recorded Investment | | Interest Income Recognized | | Average Recorded Investment | | Interest Income Recognized | | (Dollars in millions) | Consumer loans | | | | | | | | | | | | | | | | Residential first mortgage | $ | 47 |
| | $ | — |
| | $ | 116 |
| | $ | 1 |
| | $ | 60 |
| | $ | 1 |
| | $ | 210 |
| | $ | 2 |
| Second mortgage | 27 |
| | 1 |
| | 31 |
| | — |
| | 27 |
| | 1 |
| | 31 |
| | 1 |
| HELOC | 5 |
| | — |
| | 2 |
| | — |
| | 5 |
| | — |
| | 2 |
| | — |
| Commercial loans | | | | | | | | | | | | | | | | Commercial and industrial | 1 |
| | — |
| | — |
| | — |
| | 3 |
| | — |
| | — |
| | — |
| Total impaired loans | $ | 80 |
| | $ | 1 |
| | $ | 149 |
| | $ | 1 |
| | $ | 95 |
| | $ | 2 |
| | $ | 243 |
| | $ | 3 |
|
|
The following table presents impaired loans with the associated allowance recorded. | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2015 | | December 31, 2014 | | Recorded Investment | | Unpaid Principal Balance | | Related Allowance | | Recorded Investment | | Unpaid Principal Balance | | Related Allowance | | (Dollars in millions) | With no related allowance recorded | | | | | | | | | | | | Consumer loans | | | | | | | | | | | | Residential first mortgage | $ | 20 |
| | $ | 20 |
| | $ | — |
| | $ | 63 |
| | $ | 78 |
| | $ | — |
| Second mortgage | — |
| | — |
| | — |
| | 1 |
| | 6 |
| | — |
| HELOC | — |
| | — |
| | — |
| | — |
| | 1 |
| | — |
| Commercial loans | | | | | | | | | | | | Commercial and industrial | 5 |
| | 2 |
| | — |
| | — |
| | — |
| | — |
| | $ | 25 |
| | $ | 22 |
| | $ | — |
| | $ | 64 |
| | $ | 85 |
| | $ | — |
| With an allowance recorded | | | | | | | | | | | | Consumer loans | | | | | | | | | | | | Residential first mortgage | $ | 65 |
| | $ | 67 |
| | $ | 12 |
| | $ | 321 |
| | $ | 326 |
| | $ | 82 |
| Second mortgage | 28 |
| | 28 |
| | 6 |
| | 29 |
| | 29 |
| | 6 |
| HELOC | 3 |
| | 3 |
| | 1 |
| | 1 |
| | 1 |
| | 1 |
| Other consumer | — |
| | — |
| | 1 |
| | — |
| | — |
| | — |
| | $ | 96 |
| | $ | 98 |
| | $ | 20 |
| | $ | 351 |
| | $ | 356 |
| | $ | 89 |
| Total | | | | | | | | | | | | Consumer loans | | | | | | | | | | | | Residential first mortgage | $ | 85 |
| | $ | 87 |
| | $ | 12 |
| | $ | 384 |
| | $ | 404 |
| | $ | 82 |
| Second mortgage | 28 |
| | 28 |
| | 6 |
| | 30 |
| | 35 |
| | 6 |
| HELOC | 3 |
| | 3 |
| | 1 |
| | 1 |
| | 2 |
| | 1 |
| Other consumer | — |
| | — |
| | 1 |
| | — |
| | — |
| | — |
| Commercial loans | | | | | | | | | | | | Commercial and industrial | 5 |
| | 2 |
| | — |
| | — |
| | — |
| | — |
| Total impaired loans | $ | 121 |
| | $ | 120 |
| | $ | 20 |
| | $ | 415 |
| | $ | 441 |
| | $ | 89 |
|
The following table presents average impaired loans and the interest income recognized. | | | | | | | | | | | | | | | | | | | | | | | | | | For the Years Ended December 31, | | 2015 | | 2014 | | 2013 | | Average Recorded Investment | | Interest Income Recognized | | Average Recorded Investment | | Interest Income Recognized | | Average Recorded Investment | | Interest Income Recognized | | (Dollars in millions) | Consumer loans | | | | | | | | | | | | Residential first mortgage | $ | 150 |
| | $ | 5 |
| | $ | 402 |
| | $ | 11 |
| | $ | 603 |
| | $ | 17 |
| Second mortgage | 29 |
| | — |
| | 28 |
| | 1 |
| | 21 |
| | 1 |
| HELOC | 10 |
| | — |
| | 1 |
| | — |
| | 1 |
| | — |
| Commercial loans | | | | | | | | | | | | Commercial real estate | — |
| | — |
| | 1 |
| | — |
| | 46 |
| | 1 |
| Commercial and industrial | 2 |
| | — |
| | — |
| | — |
| | 2 |
| | — |
| Total impaired loans | $ | 191 |
| | $ | 5 |
| | $ | 432 |
| | $ | 12 |
| | $ | 673 |
| | $ | 19 |
|
|
| Loan Credit Quality Indicators |
| | | | | | | | | | | | | | | | | Commercial Credit Loans | Commercial Real Estate | | Commercial and Industrial | | Warehouse | | Total Commercial | June 30, 2016 | (Dollars in millions) | Grade | | | | | | | | Pass | $ | 934 |
| | $ | 562 |
| | $ | 1,505 |
| | $ | 3,001 |
| Watch | 38 |
| | 20 |
| | 146 |
| | 204 |
| Special mention | 3 |
| | 32 |
| | — |
| | 35 |
| Substandard | 1 |
| | 1 |
| | — |
| | 2 |
| Total loans | $ | 976 |
| | $ | 615 |
| | $ | 1,651 |
| | $ | 3,242 |
| | | | | | | | | December 31, 2015 | | | | | | | | Pass | $ | 766 |
| | $ | 492 |
| | $ | 1,181 |
| | $ | 2,439 |
| Watch | 42 |
| | 30 |
| | 155 |
| | 227 |
| Special mention | 2 |
| | 21 |
| | — |
| | 23 |
| Substandard | 4 |
| | 9 |
| | — |
| | 13 |
| Total loans | $ | 814 |
| | $ | 552 |
| | $ | 1,336 |
| | $ | 2,702 |
|
| | | | | | | | | | | | | | | | | | | | | Consumer Credit Loans | Residential First Mortgage | | Second Mortgage | | HELOC | | Other Consumer | | Total | June 30, 2016 | (Dollars in millions) | Grade | | | | | | | | | | Pass | $ | 2,019 |
| | $ | 93 |
| | $ | 315 |
| | $ | 32 |
| | $ | 2,459 |
| Watch | 21 |
| | 31 |
| | 22 |
| | — |
| | 74 |
| Substandard | 35 |
| | 3 |
| | 9 |
| | — |
| | 47 |
| Total loans | $ | 2,075 |
| | $ | 127 |
| | $ | 346 |
| | $ | 32 |
| | $ | 2,580 |
| | | | | | | | | | | December 31, 2015 | | Pass | $ | 2,993 |
| | $ | 101 |
| | $ | 353 |
| | $ | 31 |
| | $ | 3,478 |
| Watch | 49 |
| | 32 |
| | 22 |
| | — |
| | 103 |
| Substandard | 58 |
| | 2 |
| | 9 |
| | — |
| | 69 |
| Total loans | $ | 3,100 |
| | $ | 135 |
| | $ | 384 |
| | $ | 31 |
| | $ | 3,650 |
|
|
| | | | | | | | | | | | | | | | | | December 31, 2015 | Commercial Credit Loans | Commercial Real Estate | | Commercial and Industrial | | Warehouse | | Total Commercial | | (Dollars in millions) | Grade | | | | | | | | Pass | $ | 766 |
| | $ | 492 |
| | $ | 1,181 |
| | $ | 2,439 |
| Watch | 42 |
| | 30 |
| | 155 |
| | 227 |
| Special Mention | 2 |
| | 21 |
| | — |
| | 23 |
| Substandard | 4 |
| | 9 |
| | — |
| | 13 |
| Total loans | $ | 814 |
| | $ | 552 |
| | $ | 1,336 |
| | $ | 2,702 |
|
| | | | | | | | | | | | | | | | | | | | | | December 31, 2015 | Consumer Credit Loans | Residential First Mortgage | | Second Mortgage | | HELOC | | Other Consumer | | Total | | (Dollars in millions) | Grade | | | | | | | | | | Pass | $ | 2,993 |
| | $ | 101 |
| | $ | 353 |
| | $ | 31 |
| | $ | 3,478 |
| Watch | 49 |
| | 32 |
| | 22 |
| | — |
| | 103 |
| Substandard | 58 |
| | 2 |
| | 9 |
| | — |
| | 69 |
| Total loans | $ | 3,100 |
| | $ | 135 |
| | $ | 384 |
| | $ | 31 |
| | $ | 3,650 |
|
| | | | | | | | | | | | | | | | | | December 31, 2014 | Commercial Credit Loans | Commercial Real Estate | | Commercial and Industrial | | Warehouse | | Total Commercial | | (Dollars in millions) | Grade | | Pass | $ | 578 |
| | $ | 398 |
| | $ | 650 |
| | $ | 1,626 |
| Watch | 29 |
| | 10 |
| | 119 |
| | 158 |
| Special mention | 2 |
| | — |
| | — |
| | 2 |
| Substandard | 11 |
| | 21 |
| | — |
| | 32 |
| Total loans | $ | 620 |
| | $ | 429 |
| | $ | 769 |
| | $ | 1,818 |
|
| | | | | | | | | | | | | | | | | | | | | | December 31, 2014 | Consumer Credit Loans | Residential First Mortgage | | Second Mortgage | | HELOC | | Other Consumer | | Total | | (Dollars in millions) | Grade | | Pass | $ | 1,764 |
| | $ | 111 |
| | $ | 233 |
| | $ | 31 |
| | $ | 2,139 |
| Watch | 314 |
| | 36 |
| | 21 |
| | — |
| | 371 |
| Substandard | 115 |
| | 2 |
| | 3 |
| | — |
| | 120 |
| Total loans | $ | 2,193 |
| | $ | 149 |
| | $ | 257 |
| | $ | 31 |
| | $ | 2,630 |
|
|