XML 25 R13.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Investment Securities | 9 Months Ended
--- | ---
Sep. 30, 2017
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | 5. Investment Securities Investment securities principally include debt securities the Company classifies as available-for-sale and carries at fair value on the Consolidated Balance Sheets, with unrealize d gains and losses recorded in accumulated o ther comprehensive income (l oss) (AOCI), net of income taxes. Realized gains and losses are recognized upon disposition of the securities using the specific identification method. The following is a summary of investment securities as of September 30, 2017 an d December 31, 2016:
|  |  | 2017 |  | 2016
|  |  |  |  |  |  | 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 |  | $ | 1,412 |  | $ | 17 |  | $ | (2) |  | $ | 1,427 |  | $ | 2,019 |  | $ | 28 |  | $ | (11) |  | $ | 2,036
U.S. Government agency obligations |  |  | 12 |  |  | ― |  |  | ― |  |  | 12 |  |  | 12 |  |  | ― |  |  | ― |  |  | 12
U.S. Government treasury obligations |  |  | 1,115 |  |  | 8 |  |  | (5) |  |  | 1,118 |  |  | 465 |  |  | 3 |  |  | (8) |  |  | 460
Corporate debt securities |  |  | 28 |  |  | ― |  |  | ― |  |  | 28 |  |  | 19 |  |  | ― |  |  | ― |  |  | 19
Mortgage-backed securities (a) |  |  | 74 |  |  | 2 |  |  | ― |  |  | 76 |  |  | 92 |  |  | 3 |  |  | ― |  |  | 95
Equity securities |  |  | 1 |  |  | ― |  |  | ― |  |  | 1 |  |  | 1 |  |  | ― |  |  | ― |  |  | 1
Foreign government bonds and obligations |  |  | 539 |  |  | 1 |  |  | ― |  |  | 540 |  |  | 486 |  |  | 1 |  |  | (1) |  |  | 486
Other (b) |  |  | 50 |  |  | ― |  |  | (2) |  |  | 48 |  |  | 50 |  |  | ― |  |  | (2) |  |  | 48
Total |  | $ | 3,231 |  | $ | 28 |  | $ | (9) |  | $ | 3,250 |  | $ | 3,144 |  | $ | 35 |  | $ | (22) |  | $ | 3,157
Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. 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 September 30, 2017 and December 31, 2016:
|  |  | 2017 |  | 2016
|  |  | Less than 12 months |  | 12 months or more |  | Less than 12 months |  | 12 months or more
|  |  |  |  |  |  | Gross |  |  |  |  |  | Gross |  |  |  |  |  | Gross |  |  |  |  |  | Gross
Description of Securities (Millions) |  |  | Estimated Fair Value |  |  | Unrealized Losses |  |  | Estimated Fair Value |  |  | Unrealized Losses |  |  | Estimated Fair Value |  |  | Unrealized Losses |  |  | Estimated Fair Value |  |  | Unrealized Losses
State and municipal obligations |  | $ | 101 |  | $ | (2) |  | $ | ― |  | $ | ― |  | $ | 153 |  | $ | (11) |  | $ | ― |  | $ | ―
U.S. Government treasury obligations |  |  | 366 |  |  | (5) |  |  | ― |  |  | ― |  |  | 298 |  |  | (8) |  |  | ― |  |  | ―
Other |  |  | ― |  |  | ― |  |  | 32 |  |  | (2) |  |  | ― |  |  | ― |  |  | 32 |  |  | (2)
Total |  | $ | 467 |  | $ | (7) |  | $ | 32 |  | $ | (2) |  | $ | 451 |  | $ | (19) |  | $ | 32 |  | $ | (2)
The following table summarizes the gross unrealized losses due to temporary impairments by ratio of fair value to amortized cost as of September 30, 2017 and December 31, 2016:
|  | 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
2017: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
90%–100% |  | 22 |  | $ | 467 |  | $ | (7) |  | 6 |  | $ | 32 |  | $ | (2) |  | 28 |  | $ | 499 |  | $ | (9)
Total as of September 30, 2017 |  | 22 |  | $ | 467 |  | $ | (7) |  | 6 |  | $ | 32 |  | $ | (2) |  | 28 |  | $ | 499 |  | $ | (9)
2016: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
90%–100% |  | 33 |  | $ | 411 |  | $ | (13) |  | 6 |  | $ | 32 |  | $ | (2) |  | 39 |  | $ | 443 |  | $ | (15)
Less than 90% |  | 4 |  |  | 40 |  |  | (6) |  | ― |  |  | ― |  |  | ― |  | 4 |  |  | 40 |  |  | (6)
Total as of December 31, 2016 |  | 37 |  | $ | 451 |  | $ | (19) |  | 6 |  | $ | 32 |  | $ | (2) |  | 43 |  | $ | 483 |  | $ | (21)
The gross unrealized losses are attributed to overall wider credit spreads for specific issuers, adverse changes in market benchmark interest rates, or a combination thereof, all compared to those prevailing when the investment securities were acquired. Overall, for the investment securities in gross unrealized loss positions, (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-t han-temporary impairment during the periods presented. Contractual maturities for investment securities with stated maturities as of September 30, 2017 were as follows:
|  |  |  |  |  |  | Estimated
(Millions) |  | Cost |  | Fair Value
Due within 1 year |  | $ | 648 |  | $ | 648
Due after 1 year but within 5 years |  |  | 998 |  |  | 1,000
Due after 5 years but within 10 years |  |  | 268 |  |  | 272
Due after 10 years |  |  | 1,267 |  |  | 1,282
Total |  | $ | 3,181 |  | $ | 3,202
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
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Debt Security -URI http://asc.fasb.org/extlink&oid=6509901 Reference 2: 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=73527792&loc=d3e27290-111563 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=73527792&loc=d3e27232-111563 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Equity Security -URI http://asc.fasb.org/extlink&oid=6511694 Reference 6: 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 7: 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=73527792&loc=d3e27161-111563 Reference 8: 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=73527792&loc=d3e27357-111563 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=73527792&loc=d3e27405-111563 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration