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Fair Value
 6 Months Ended
Jun. 30, 2022
Fair Value Disclosures [Abstract]  
FAIR VALUE FAIR VALUE
Fair Value Measurements
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. For more information about our valuation methodologies for assets and liabilities measured at fair value and the fair value hierarchy, see Note 3 of our 2021 Form 10-K.
Quantitative Disclosure by Fair Value Hierarchy
Assets and liabilities measured at fair value by class on a recurring basis are summarized as follows:
(In millions)June 30, 2022
Level 1Level 2Level 3Total
ASSETS
Available-for-sale securities:
U.S. Treasury, agencies and corporations$442 $23,044 $— $23,486 
Municipal securities1,737 1,737 
Other debt securities74 74 
Total available-for-sale442 24,855 — 25,297 
Trading account14 290 304 
Other noninterest-bearing investments:
Bank-owned life insurance541 541 
Private equity investments 1
9 77 86 
Other assets:
Agriculture loan servicing and interest-only strips12 12 
Deferred compensation plan assets117 117 
Derivatives:
Derivatives designated as hedges58 58 
Derivatives not designated as hedges94 94 
Total assets$582 $25,838 $89 $26,509 
LIABILITIES
Securities sold, not yet purchased$222 $— $— $222 
Other liabilities:
Derivatives:
Derivatives designated as hedges2 2 
Derivatives not designated as hedges293 293 
Total liabilities$222 $295 $— $517 
1 The Level 1 private equity investments (“PEIs”) relate to the portion of our Small Business Investment Company (“SBIC”) investments that are now publicly traded.
(In millions)December 31, 2021
Level 1Level 2Level 3Total
ASSETS
Available-for-sale securities:
U.S. Treasury, agencies and corporations$134 $22,144 $— $22,278 
Municipal securities1,694 1,694 
Other debt securities76 76 
Total available-for-sale134 23,914 — 24,048 
Trading account14 358 372 
Other noninterest-bearing investments:
Bank-owned life insurance537 537 
Private equity investments 1
35 66 101 
Other assets:
Agriculture loan servicing and interest-only strips12 12 
Deferred compensation plan assets138 138 
Derivatives:
Derivatives designated as hedges10 10 
Derivatives not designated as hedges209 209 
Total assets$321 $25,028 $78 $25,427 
LIABILITIES
Securities sold, not yet purchased$254 $— $— $254 
Other liabilities:
Derivatives:
Derivatives not designated as hedges51 51 
Total liabilities$254 $51 $— $305 
1 The Level 1 PEIs relate to the portion of our SBIC investments that are now publicly traded.
Level 3 Valuations
Our Level 3 holdings include PEIs, agriculture loan servicing, and interest-only strips. For additional information regarding our Level 3 financial instruments, including the methods and significant assumptions used to estimate their fair value, see Note 3 of our 2021 Form 10-K.
Rollforward of Level 3 Fair Value Measurements
The following schedule presents a rollforward of assets and liabilities that are measured at fair value on a recurring basis using Level 3 inputs:
Level 3 Instruments
Three Months EndedSix Months Ended
June 30, 2022June 30, 2021June 30, 2022June 30, 2021
(In millions)Private equity investmentsAg loan servicing & interest only stripsPrivate equity investmentsAg loan servicing & interest only stripsPrivate equity investmentsAg loan servicing & interest only stripsPrivate equity investmentsAg loan servicing & interest only strips
Balance at beginning of period
$74 $12 $83 $15 $66 $12 $80 $16 
Unrealized securities gains (losses), net— — 68 — 5 — 69 — 
Other noninterest income (expense)— — — — — — — (1)
Purchases3 — 2 — 9 — 6 — 
Cost of investments sold— — (4)— (3)— (6)— 
Transfers out 1
— — (77)— — — (77)— 
Balance at end of period
$77 $12 $72 $15 $77 $12 $72 $15 
1 Represents the transfer of SBIC investments out of Level 3 and into Level 1 because they are now publicly traded.
The rollforward of Level 3 instruments includes the following realized gains and losses recognized in securities gains (losses) on the consolidated statement of income for the periods presented:
(In millions)Three Months EndedSix Months Ended
June 30, 2022June 30, 2021June 30, 2022June 30, 2021
Securities gains (losses), net$— $(4)$(2)$(5)
Nonrecurring Fair Value Measurements
Certain assets and liabilities may be recorded at fair value on a nonrecurring basis, including impaired loans that have been measured based on the fair value of the underlying collateral, other real estate owned (“OREO”), and nonmarketable equity securities. Nonrecurring fair value adjustments typically involve write-downs of individual assets or the application of lower of cost or fair value accounting. At June 30, 2022, we had no assets or liabilities that had fair value changes measured on a nonrecurring basis. At December 31, 2021, we had $2 million of collateral-dependent loans valued as Level 2 measurements, and we recognized $3 million of losses from fair value changes related to these loans. The previous fair values may not be current as of the dates indicated, but rather as of the most recent date the fair value change occurred. For additional information regarding the measurement of fair value for impaired loans, collateral-dependent loans, and OREO, see Note 3 of our 2021 Form 10-K.
Fair Value of Certain Financial Instruments
The following schedule summarizes the carrying values and estimated fair values of certain financial instruments:
 June 30, 2022December 31, 2021
(In millions)Carrying
value
Fair value		LevelCarrying
value		Fair valueLevel
Financial assets:
HTM investment securities$614 $578 2$441 $443 2
Loans and leases (including loans held for sale), net of allowance
51,904 50,184 350,421 50,619 3
Financial liabilities:
Time deposits1,426 1,401 21,622 1,624 2
Long-term debt671 660 21,012 1,034 2
This summary excludes financial assets and liabilities for which carrying value approximates fair value and financial instruments that are recorded at fair value on a recurring basis. For additional information regarding the financial instruments within the scope of this disclosure, and the methods and significant assumptions used to estimate their fair value, see Note 3 of our 2021 Form 10-K.