Goodwill and Other Intangible Assets (Tables)
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12 Months Ended |
Dec. 31, 2012
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Goodwill and Other Intangible Assets Disclosure [Abstract] |
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Changes in Goodwill by Business Segment |
Note 10 Goodwill and Other Intangible Assets | | | | | | | | | | | | | | | | | | | | | | | Changes in goodwill by business segment during 2012 and 2011 follow: | | | | | | | | | | | | | | | | | | | | | | | Table 101: Changes in Goodwill by Business Segment (a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Corporate & | | Asset | | Residential | | | | | | | | | | | Retail | | Institutional | | Management | | Mortgage | | | | | | | | In millions | | Banking | | Banking | | Group | | Banking | | Other (b) | | Total | | December 31, 2010 | | $ | 5,302 | | $ | 2,728 | | $ | 62 | | $ | 43 | | $ | 14 | | $ | 8,149 | | BankAtlantic branch acquisition | | | 35 | | | 6 | | | | | | | | | | | | 41 | | Flagstar branch acquisition | | | 17 | | | | | | | | | | | | | | | 17 | | Other (c) | | | 40 | | | 29 | | | 7 | | | | | | 2 | | | 78 | | December 31, 2011 | | $ | 5,394 | | $ | 2,763 | | $ | 69 | | $ | 43 | | $ | 16 | | $ | 8,285 | | RBC Bank (USA) acquisition | | | 429 | | | 473 | | | | | | 2 | | | 46 | | | 950 | | SmartStreet divestiture | | | | | | | | | | | | | | | (46) | | | (46) | | Residential Mortgage Banking impairment charge | | | | | | | | | | | | (45) | | | | | | (45) | | Other (c) | | | (29) | | | (22) | | | (5) | | | | | | (16) | | | (72) | | December 31, 2012 | | $ | 5,794 | | $ | 3,214 | | $ | 64 | | $ | - | | $ | - | | $ | 9,072 | | (a) | The Non-Strategic Assets Portfolio business segment does not have any goodwill allocated to it. | | (b) | Includes goodwill related to BlackRock. | | (c) | Primarily related to correction of amounts for an acquisition affecting prior periods. | |
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Summary of Changes In Goodwill and Other Intangible Assets |
Changes in goodwill and other intangible assets during 2012 follow: | | | | | | | | | | | | | | | | | | Table 102: Summary of Changes in Goodwill and Other Intangible Assets | | | | | | | | | | | | | | | | | | | | | Customer- | | Servicing | | In millions | | Goodwill | | Related | | Rights | | December 31, 2011 | | $ | 8,285 | | $ | 742 | | $ | 1,117 | | Additions/adjustments: | | | | | | | | | | | | RBC Bank (USA) acquisition | | | 950 | | | 164 | | | 16 | | | SmartStreet divestiture | | | (46) | | | (13) | | | | | | Residential Mortgage Banking impairment charge | | | (45) | | | | | | | | | Other (a) | | | (72) | | | | | | | | | Change in valuation allowance | | | | | | | | | 21 | | | Amortization | | | | | | (167) | | | (143) | | | Mortgage and other loan servicing rights | | | | | | | | | 60 | | December 31, 2012 | | $ | 9,072 | | $ | 726 | | $ | 1,071 | | (a) | Primarily related to correction of amounts for an acquisition affecting prior periods. |
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Other Intangible Assets |
Table 103: Other Intangible Assets | | | | | | | | | | | | | | | | December 31 | | December 31 | | In millions | | 2012 | | 2011 | | Customer-related and other intangibles | | | | | | | | Gross carrying amount | $ | 1,676 | | $ | 1,525 | | | Accumulated amortization | | (950) | | | (783) | | | | Net carrying amount | $ | 726 | | $ | 742 | | Mortgage and other loan servicing rights | | | | | | | | Gross carrying amount | $ | 2,071 | | $ | 2,009 | | | Valuation allowance | | (176) | | | (197) | | | Accumulated amortization | | (824) | | | (695) | | | | Net carrying amount | $ | 1,071 | | $ | 1,117 | | | | | Total | $ | 1,797 | | $ | 1,859 | |
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Amortization Expense on Existing Intangible Assets |
Table 104: Amortization Expense on Existing Intangible Assets | | | | | | | | In millions | | | | 2010 | | $ | 304 | | 2011 | | | 324 | | 2012 | | | 310 | | | | | | | 2013 | | | 243 | | 2014 | | | 206 | | 2015 | | | 180 | | 2016 | | | 156 | | 2017 | | | 132 | |
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Commercial Mortgage Servicing Rights |
Changes in commercial mortgage servicing rights (MSRs) follow: | | | | | | | | | | | | | | | | | | Table 105: Commercial Mortgage Servicing Rights | | | | | | | | | | | | | | | | | | In millions | | 2012 | | 2011 | | 2010 | | Commercial Mortgage Servicing Rights - Net Carrying Amount | | | | | | | | | | | January 1 | | $ | 468 | | $ | 665 | | $ | 921 | | Additions (a) | | | 73 | | | 120 | | | 83 | | Sale of servicing rights (b) | | | | | | | | | (192) | | Change in valuation allowance | | | 21 | | | (157) | | | (40) | | Amortization expense (c) | | | (142) | | | (160) | | | (107) | | | December 31 | | $ | 420 | | $ | 468 | | $ | 665 | | Commercial Mortgage Servicing Rights - Valuation Allowance | | | | | | | | | | | January 1 | | $ | (197) | | $ | (40) | | | | | Provision | | | (46) | | | (166) | | $ | (110) | | Recoveries | | | 43 | | | 9 | | | 70 | | Other (c) | | | 24 | | | | | | | | | December 31 | | $ | (176) | | $ | (197) | | $ | (40) | | (a) | Additions for 2012 included $45 million from loans sold with servicing retained and $28 million from purchases of servicing rights from third parties. | | | Comparable amounts were $55 million and $65 million for 2011 and $45 million and $38 million for 2010. | | (b) | Reflects the sale of a duplicative agency servicing operation in 2010. | | | | | (c) | Includes a direct write-down of servicing rights for $24 million recognized in the first quarter of 2012 primarily due to market-driven changes in interest rates. | |
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Residential Mortgage Servicing Rights |
Changes in the residential MSRs follow: | | | | | | | | | | | | | | | | | | Table 106: Residential Mortgage Servicing Rights | | | | | | | | | | | | | | | | | | In millions | | 2012 | | 2011 | | 2010 | | January 1 | | $ | 647 | | $ | 1,033 | | $ | 1,332 | | Additions: | | | | | | | | | | | | From loans sold with servicing retained | | | 117 | | | 118 | | | 95 | | | RBC Bank (USA) acquisition | | | 16 | | | | | | | | | Purchases | | | 175 | | | 65 | | | | | Changes in fair value due to: | | | | | | | | | | | | Time and payoffs (a) | | | (167) | | | (163) | | | (185) | | | Other (b) | | | (138) | | | (406) | | | (209) | | December 31 | | $ | 650 | | $ | 647 | | $ | 1,033 | | Unpaid principal balance of loans serviced for others at December 31 | | $ | 119,262 | | $ | 118,058 | | $ | 125,806 | | (a) | Represents decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that were paid down or paid off during the period. | (b) | Represents MSR value changes resulting primarily from market-driven changes in interest rates, as well as changes in assumptions such as prepayments and servicing costs. |
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Commercial Mortgage Loan Servicing Assets - Key Valuation Assumptions |
Table 107: Commercial Mortgage Loan Servicing Assets - Key Valuation Assumptions | | | | | | | December 31 | | | December 31 | | | Dollars in millions | | 2012 | | | 2011 | | | Fair Value | | $ | 427 | | | $ | 471 | | | Weighted-average life (years) | | | 5.4 | | | | 5.9 | | | Weighted-average constant prepayment rate | | | 7.63 | % | | | 5.08 | % | | | Decline in fair value from 10% adverse change | | $ | 8 | | | $ | 6 | | | | Decline in fair value from 20% adverse change | | $ | 16 | | | $ | 11 | | | Effective discount rate | | | 7.70 | % | | | 7.92 | % | | | Decline in fair value from 10% adverse change | | $ | 12 | | | $ | 9 | | | | Decline in fair value from 20% adverse change | | $ | 23 | | | $ | 18 | | | | | | | | | | | | | | |
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Residential Mortgage Loan Servicing Assets - Key Valuation Assumptions |
Table 108: Residential Mortgage Loan Servicing Assets - Key Valuation Assumptions | | | | | | | December 31 | | | December 31 | | | Dollars in millions | | 2012 | | | 2011 | | | Fair value | | $ | 650 | | | $ | 647 | | | Weighted-average life (years) | | | 4.3 | | | | 3.6 | | | Weighted-average constant prepayment rate | | | 18.78 | % | | | 22.10 | % | | | Decline in fair value from 10% adverse change | | $ | 45 | | | $ | 44 | | | | Decline in fair value from 20% adverse change | | $ | 85 | | | $ | 84 | | | Weighted-average option adjusted spread | | | 11.15 | % | | | 11.77 | % | | | Decline in fair value from 10% adverse change | | $ | 26 | | | $ | 25 | | | | Decline in fair value from 20% adverse change | | $ | 49 | | | $ | 48 | | |
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Fees from Mortgage and Other Loan Servicing |
Table 109: Fees from Mortgage and Other Loan Servicing | | | | | | | | | | | | | | | In millions | | 2012 | | 2011 | | 2010 | | Fees from mortgage and other loan servicing | | $ | 557 | | $ | 641 | | $ | 692 | | | | | | | | | | | | | | |
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