XML 101 R14.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Investment Securities | 6 Months Ended
--- | ---
Jun. 30, 2013
Investment Securities [Abstract] |
Investment Securities | 5. Investment Securities Investment securities include debt and equity securities classified as available for sale. The Company's investment securities, principally debt securities, are carried at fair value on the Consolidated Balanc e Sheets with unrealized gains (losses) recorded in AOCI, net of income taxes. Realized gains and losses are recognized in results of operations upon disposition of the securities using the specific identification method on a trade date basis. Refer to Note 2 for a description of the Company's methodology for de termining the fair value of investment securities. The following is a summary of investment securities as of June 30, 2013 and December 31, 2012:
|  |  | 2013 |  | 2012
|  |  |  |  |  |  | Gross |  |  | Gross |  |  | Estimated |  |  |  |  |  | Gross |  |  | Gross |  |  | Estimated
|  |  |  |  |  | Unrealized |  | Unrealized |  |  | Fair |  |  |  | Unrealized |  | Unrealized |  |  | Fair
Description of Securities (Millions) |  |  | Cost |  | Gains |  | Losses |  |  | Value |  | Cost |  | Gains |  | Losses |  |  | Value
State and municipal obligations |  | $ | 4,351 |  | $ | 81 |  | $ | (43) |  | $ | 4,389 |  | $ | 4,280 |  | $ | 199 |  | $ | (5) |  | $ | 4,474
U.S. Government agency |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| obligations |  |  | 3 |  |  | ― |  |  | ― |  |  | 3 |  |  | 3 |  |  | ― |  |  | ― |  |  | 3
U.S. Government treasury |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| obligations |  |  | 280 |  |  | 5 |  |  | ― |  |  | 285 |  |  | 330 |  |  | 8 |  |  | ― |  |  | 338
Corporate debt securities |  |  | 40 |  |  | 3 |  |  | ― |  |  | 43 |  |  | 73 |  |  | 6 |  |  | ― |  |  | 79
Mortgage-backed securities(a) |  |  | 170 |  |  | 6 |  |  | ― |  |  | 176 |  |  | 210 |  |  | 14 |  |  | ― |  |  | 224
Equity securities(b) |  |  | 46 |  |  | 143 |  |  | ― |  |  | 189 |  |  | 64 |  |  | 232 |  |  | ― |  |  | 296
Foreign government bonds and |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| obligations |  |  | 122 |  |  | 6 |  |  | (1) |  |  | 127 |  |  | 134 |  |  | 15 |  |  | ― |  |  | 149
Other(c) |  |  | 51 |  |  | ― |  |  | (1) |  |  | 50 |  |  | 51 |  |  | ― |  |  | ― |  |  | 51
Total |  | $ | 5,063 |  | $ | 244 |  | $ | (45) |  | $ | 5,262 |  | $ | 5,145 |  | $ | 474 |  | $ | (5) |  | $ | 5,614
Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. Primarily r eprese nts the Company's investment in ICBC. Other comprises investments in various mutual funds. The following table provides information about the Company's investment securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of June 30, 2013 and December 31, 2012:
|  |  | 2013 |  | 2012
|  |  | Less than 12 months |  | 12 months or more |  | Less than 12 months |  | 12 months or more
|  |  |  |  |  |  | Gross |  |  |  |  |  | Gross |  |  |  |  |  | Gross |  |  |  |  |  | Gross
|  |  |  | Estimated |  | Unrealized |  | Estimated |  | Unrealized |  |  | Estimated |  | Unrealized |  | Estimated |  | Unrealized
Description of Securities (Millions) |  |  | Fair Value |  | Losses |  | Fair Value |  | Losses |  |  | Fair Value |  | Losses |  | Fair Value |  | Losses
State and municipal obligations |  | $ | 992 |  | $ | (32) |  | $ | 66 |  | $ | (11) |  | $ | 100 |  | $ | (1) |  | $ | 73 |  | $ | (4)
Foreign government bonds and |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| obligations |  |  | 42 |  |  | (1) |  |  | ― |  |  | ― |  |  | ― |  |  | ― |  |  | ― |  |  | ―
Other |  |  | ― |  |  | ― |  |  | 17 |  |  | (1) |  |  | ― |  |  | ― |  |  | ― |  |  | ―
Total |  | $ | 1,034 |  | $ | (33) |  | $ | 83 |  | $ | (12) |  | $ | 100 |  | $ | (1) |  | $ | 73 |  | $ | (4)
The following table summarizes the gross unrealized losses due to temporary impairments by ratio of fair value to amortized cost as of June 30, 2013 and December 31, 2012:
|  | Less than 12 months |  | 12 months or more |  | Total
Ratio of Fair Value to |  |  |  |  |  |  |  | Gross |  |  |  |  |  |  |  | Gross |  |  |  |  |  |  |  | Gross
Amortized Cost |  | Number of |  | Estimated |  | Unrealized |  | Number of |  | Estimated |  | Unrealized |  | Number of |  | Estimated |  | Unrealized
(Dollars in millions) |  | Securities |  | Fair Value |  | Losses |  | Securities |  | Fair Value |  | Losses |  | Securities |  | Fair Value |  | Losses
2013: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
90%–100% |  | 241 |  | $ | 994 |  | $ | (28) |  | 3 |  | $ | 17 |  | $ | (1) |  | 244 |  | $ | 1,011 |  | $ | (29)
Less than 90% |  | 7 |  |  | 40 |  |  | (5) |  | 4 |  |  | 66 |  |  | (11) |  | 11 |  |  | 106 |  |  | (16)
Total as of June 30, 2013 |  | 248 |  | $ | 1,034 |  | $ | (33) |  | 7 |  | $ | 83 |  | $ | (12) |  | 255 |  | $ | 1,117 |  | $ | (45)
2012: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
90%–100% |  | 46 |  | $ | 100 |  | $ | (1) |  | 4 |  | $ | 73 |  | $ | (4) |  | 50 |  | $ | 173 |  | $ | (5)
Total as of December 31, 2012 |  | 46 |  | $ | 100 |  | $ | (1) |  | 4 |  | $ | 73 |  | $ | (4) |  | 50 |  | $ | 173 |  | $ | (5)
The gross unrealized losses are attributed to overall wider credit spreads for s tate and municipal securities, wide r credit spreads for specific issuers, adverse changes in market benchmark interest rates, or a combination thereof, all as compared to those prevailing wh en the investment securities were acquired. Overall, for the investment securities in gross unrealized loss positions identified above, (i) the Company does not intend to sell the investment securities, (ii) it is more likely than not that the Company will not be required to sell the investment securities before recovery of the unrealized losses, and (iii) the Company expects that the contractual principal and interest will be received on the investment securities. As a result, the Company recognized no other-than-temporary impairment during the six months ended June 30, 2013 or the year ended December 31, 2012. Supplemental Information Gross realized gains on the sales of investment securities, included in other non-interest revenues, for the three and six months ended June 30, 2013 were $29 million and $65 million, respectively. G ross realized gains on the sales of investment securities, included in other non-interest revenues, for the three and six months ended June 30, 2012 were $26 million and $52 million, respectively. There were no g ross realized losses on sales of investment securities for the three and six months ended June 30, 2013. G ross realized losses on sales of investment securities, included in other non-interest revenues, for both the three and six months ended June 30, 2012 were $1 million. Contractual ma turities of investment securities, excluding equity securities and other securities, as of June 30, 2013 were as follows:
|  |  |  |  |  |  | Estimated
(Millions) |  | Cost |  | Fair Value
Due within 1 year |  | $ | 432 |  | $ | 433
Due after 1 year but within 5 years |  |  | 392 |  |  | 399
Due after 5 years but within 10 years |  |  | 176 |  |  | 184
Due after 10 years |  |  | 3,966 |  |  | 4,007
Total |  | $ | 4,966 |  | $ | 5,023
The expected payments on state and municipal obligations and mortgage-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations.

X
- Details
Name: | us-gaap_AvailableForSaleSecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 03-1 -Paragraph 21 -Subparagraph a, b -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27337-111563 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27198-111563 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62586-112803 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 19, 20, 21 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Staff Position (FSP) -Number FAS115-1/124-1 -Paragraph 17 -Subparagraph a, b -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
Name: | us-gaap_AvailableForSaleSecuritiesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration