XML 45 R33.htm IDEA: XBRL DOCUMENT v3.8.0.1
Goodwill and Other Intangible Assets (Tables)
 9 Months Ended
Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill [Table Text Block]
(Dollars in millions)
Consumer
 
Wholesale
 
Total
Balance, January 1, 2017

$4,262

 

$2,075

 

$6,337

Measurement period adjustment related to the acquisition of Pillar
—

 
1

 
1

Balance, September 30, 2017

$4,262

 

$2,076

 

$6,338
Schedule of Finite-Lived Intangible Assets by Major Class [Table Text Block]
Changes in the carrying amounts of other intangible assets for the nine months ended September 30 are presented in the following table:
(Dollars in millions)
Residential MSRs - Fair Value
 
Other
 
Total
Balance, January 1, 2017

$1,572

 

$85

 

$1,657

Amortization 1
—

 
(16
)
 
(16
)
Servicing rights originated
252

 
10

 
262

Changes in fair value:
 
 
 
 

Due to changes in inputs and assumptions 2
(27
)
 
—

 
(27
)
Other changes in fair value 3
(168
)
 
—

 
(168
)
Servicing rights sold
(1
)
 
—

 
(1
)
Other 4
—

 
(1
)
 
(1
)
Balance, September 30, 2017

$1,628

 

$78

 

$1,706

 
 
 
 
 
 
Balance, January 1, 2016

$1,307

 

$18

 

$1,325

Amortization 1
—

 
(6
)
 
(6
)
Servicing rights originated
198

 
—

 
198

Servicing rights purchased
104

 
—

 
104

Changes in fair value:
 
 
 
 


Due to changes in inputs and assumptions 2
(328
)
 
—

 
(328
)
Other changes in fair value 3
(160
)
 
—

 
(160
)
Servicing rights sold
(2
)
 
—

 
(2
)
Balance, September 30, 2016

$1,119

 

$12

 

$1,131

1 Does not include expense associated with non-qualified community development investments. See Note 8, "Certain Transfers of Financial Assets and Variable Interest Entities," for additional information.
2 Primarily reflects changes in option adjusted spreads and prepayment speed assumptions, due to changes in interest rates.
3 Represents changes due to the collection of expected cash flows, net of accretion due to the passage of time.
4 Represents the first quarter of 2017 measurement period adjustment on other intangible assets acquired previously in the Pillar acquisition.
Key Characteristics, Inputs, and Economic Assumptions Used to Estimate the Fair Value of the Company's MSRs
(Dollars in millions)
September 30, 2017
 
December 31, 2016
Fair value of residential MSRs

$1,628

 

$1,572

Prepayment rate assumption (annual)
13
%
 
9
%
Decline in fair value from 10% adverse change

$91

 

$50

Decline in fair value from 20% adverse change
167

 
97

Option adjusted spread (annual)
4
%
 
8
%
Decline in fair value from 10% adverse change

$41

 

$63

Decline in fair value from 20% adverse change
80

 
122

Weighted-average life (in years)
5.2

 
7.0

Weighted-average coupon
4.0
%
 
4.0
%
Fair Value Inputs, Assets, Quantitative Information [Table Text Block]
A summary of the key inputs used to estimate the fair value of the Company’s commercial servicing rights at September 30, 2017 and December 31, 2016, are presented in the following table.
(Dollars in millions)
September 30, 2017
 
December 31, 2016
Fair value of commercial mortgage servicing rights

$69

 

$62

Discount rate (annual)
12
%
 
12
%
Prepayment rate assumption (annual)
7

 
6

Float earnings rate (annual)
1.0

 
0.5

Weighted-average life (in years)
7.1

 
7.0