Fair Value (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Assets and Liabilities Measured at Fair Value by Class on a Recurring Basis

Assets and liabilities measured at fair value by class on a recurring basis are summarized as follows:


(In millions)	December 31, 2022
	Level 1		Level 2		Level 3		Total
ASSETS
Investment securities:
Available-for-sale:
U.S. Treasury, agencies and corporations	$	393	$	9,815	$	—	$	10,208
Municipal securities			1,634				1,634
Other debt securities			73				73

Total Available-for-sale	393		11,522		—		11,915
Trading account	395		70				465
Other noninterest-bearing investments:
Bank-owned life insurance			546				546
Private equity investments 1	4				81		85
Other assets:
Agriculture loan servicing and interest-only strips					14		14
Deferred compensation plan assets	114						114
Derivatives			386				386
Total Assets	$	906	$	12,524	$	95	$	13,525
LIABILITIES
Securities sold, not yet purchased	$	187	$	—	$	—	$	187
Other liabilities:

Derivatives			451				451
Total Liabilities	$	187	$	451	$	—	$	638

1 The level 1 PEIs relate to the portion of our SBIC investments that are now publicly traded.


(In millions)	December 31, 2021
	Level 1		Level 2		Level 3		Total
ASSETS
Investment securities:
Available-for-sale:
U.S. Treasury, agencies and corporations	$	134	$	22,144	$	—	$	22,278
Municipal securities			1,694				1,694
Other debt securities			76				76

Total Available-for-sale	134		23,914		—		24,048
Trading account	14		358				372
Other noninterest-bearing investments:
Bank-owned life insurance			537				537
Private equity investments	35				66		101
Other assets:
Agriculture loan servicing and interest-only strips					12		12
Deferred compensation plan assets	138						138
Derivatives			219				219
Total Assets	$	321	$	25,028	$	78	$	25,427
LIABILITIES
Securities sold, not yet purchased	$	254	$	—	$	—	$	254
Other liabilities:
Derivatives			51				51
Total Liabilities	$	254	$	51	$	—	$	305

Schedule of Assets and Liabilities Measured At Fair Value By Class on a Recurring Basis Using Level 3 Inputs

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
	December 31, 2022				December 31, 2021
(In millions)	Private equity investments		Ag loan servicing & interest-only strips		Private equity investments		Ag loan servicing & interest-only strips

Balance at beginning of year	$	66	$	12	$	80	$	16

Unrealized securities gains (losses), net	3		—		71		—
Other noninterest income (expense)	—		2		—		(3)
Purchases	16		—		17		—
Cost of investments sold	(3)		—		(24)		—
Redemptions and paydowns	—		—		—		(1)
Transfers out 1	(1)		—		(78)		—
Balance at end of year	$	81	$	14	$	66	$	12

1 Represents the transfer of SBIC investments out of Level 3 and into Level 1 because they are now publicly traded.

Schedule of Realized Gain (Loss)

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)	Year Ended December 31,
	2022		2021


Securities gains (losses), net	$	(2)	$	31

Schedule of Carrying Values and Estimated Fair Values of Financial Instruments

The following schedule presents the carrying values and estimated fair values of certain financial instruments:


	December 31, 2022					December 31, 2021
(In millions)	Carrying value		Fair value		Level	Carrying value		Fair value		Level
Financial assets:
Held-to-maturity investment securities	$	11,126	$	11,239	2	$	441	$	443	2
Loans and leases (including loans held for sale), net of allowance	55,086		53,093		3	50,421		50,619		3
Financial liabilities:
Time deposits	2,309		2,269		2	1,622		1,624		2


Long-term debt	651		635		2	1,012		1,034		2