Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2015

Assets And Liabilities Recorded At Fair Value On A Recurring Basis

The following tables present the recorded amount of assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and 2014.



(in millions)	Total		Level 1		Level 2		Level 3
December 31, 2015

Trading securities:
Deferred compensation plan assets	$	89	$	89	$	—	$	—
Equity and other non-debt securities	3		3		—		—
Total trading securities	92		92		—		—
Investment securities available-for-sale:
U.S. Treasury and other U.S. government agency securities	2,763		2,763		—		—
Residential mortgage-backed securities (a)	7,545		—		7,545		—
State and municipal securities	9		—		—		9		(b)
Corporate debt securities	1		—		—		1		(b)
Equity and other non-debt securities	201		134		—		67		(b)
Total investment securities available-for-sale	10,519		2,897		7,545		77
Derivative assets:
Interest rate contracts	286		—		277		9
Energy derivative contracts	475		—		475		—
Foreign exchange contracts	57		—		57		—
Warrants	2		—		—		2
Total derivative assets	820		—		809		11
Total assets at fair value	$	11,431	$	2,989	$	8,354	$	88
Derivative liabilities:
Interest rate contracts	$	92	$	—	$	92	$	—
Energy derivative contracts	472		—		472		—
Foreign exchange contracts	46		—		46		—
Total derivative liabilities	610		—		610		—
Deferred compensation plan liabilities	89		89		—		—
Total liabilities at fair value	$	699	$	89	$	610	$	—


(a)	Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises.


(b)	Auction-rate securities.



(in millions)	Total		Level 1		Level 2		Level 3
December 31, 2014
Trading securities:
Deferred compensation plan assets	$	94	$	94	$	—	$	—
Investment securities available-for-sale:
U.S. Treasury and other U.S. government agency securities	526		526		—		—
Residential mortgage-backed securities (a)	7,274		—		7,274		—
State and municipal securities	23		—		—		23		(b)
Corporate debt securities	51		—		50		1		(b)
Equity and other non-debt securities	242		130		—		112		(b)
Total investment securities available-for-sale	8,116		656		7,324		136
Derivative assets:
Interest rate contracts	328		—		328		—
Energy derivative contracts	527		—		527		—
Foreign exchange contracts	39		—		39		—
Warrants	4		—		—		4
Total derivative assets	898		—		894		4
Total assets at fair value	$	9,108	$	750	$	8,218	$	140
Derivative liabilities:
Interest rate contracts	$	102	$	—	$	102	$	—
Energy derivative contracts	525		—		525		—
Foreign exchange contracts	34		—		34		—
Total derivative liabilities	661		—		661		—
Deferred compensation plan liabilities	94		94		—		—
Total liabilities at fair value	$	755	$	94	$	661	$	—


(a)	Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises.


(b)	Auction-rate securities.

Changes In Level 3 Assets And Liabilities Measured At Fair Value On A Recurring Basis

The following table summarizes the changes in Level 3 assets measured at fair value on a recurring basis for the years ended December 31, 2015 and 2014.



			Net Realized/Unrealized Gains (Losses) (Pretax)
			Net Realized/Unrealized Gains (Losses) (Pretax)
	Balance at Beginning of Period		Recorded in Earnings								Recorded in Other Comprehensive Income (Loss)						Balance at End of Period

(in millions)			Realized				Unrealized							Sales
Year Ended December 31, 2015
Investment securities available-for-sale:
State and municipal securities (a)	$	23	$	—			$	—			$	—		$	(14	)	$	9
Corporate debt securities (a)	1		—				—				—			—			1
Equity and other non-debt securities (a)	112		(2		)	(b)	—				1		(c)	(44		)	67
Total investment securities available-for-sale	136		(2		)	(b)	—				1		(c)	(58		)	77
Derivative assets:
Interest rate contracts	—		—				9			(d)	—			—			9
Warrants	4		6			(d)	(1		)	(d)	—			(7		)	2
Year Ended December 31, 2014
Investment securities available-for-sale:
State and municipal securities (a)	$	22	$	—			$	—			$	1	(c)	$	—		$	23
Corporate debt securities (a)	1		—				—				—			—			1
Equity and other non-debt securities (a)	136		2			(b)	—				7		(c)	(33		)	112
Total investment securities available-for-sale	159		2			(b)	—				8		(c)	(33		)	136
Derivative assets:
Warrants	3		7			(d)	1			(d)	—			(7		)	4


(a)	Auction-rate securities.


(b)	Realized and unrealized gains and losses due to changes in fair value recorded in "net securities losses" on the consolidated statements of income.


(c)	Recorded in "net unrealized (losses) gains on investment securities available-for-sale" in other comprehensive income.


(d)	Realized and unrealized gains and losses due to changes in fair value recorded in "other noninterest income" on the consolidated statements of income.

Assets And Liabilities Recorded At Fair Value On A Nonrecurring Basis

The following table presents assets recorded at fair value on a nonrecurring basis at December 31, 2015 and 2014. No liabilities were recorded at fair value on a nonrecurring basis at December 31, 2015 and 2014.



(in millions)	Total		Level 2		Level 3
December 31, 2015
Loans held-for-sale:
Commercial	$	8	$	8	$	—
Loans:
Commercial	134		—		134
Commercial mortgage	11		—		11
International	8		—		8
Total loans	153		—		153
Nonmarketable equity securities	1		—		1
Other real estate	2		—		2
Total assets at fair value	$	164	$	8	$	156
December 31, 2014
Loans:
Commercial	$	38	$	—	$	38
Commercial mortgage	26		—		26
Total loans	64		—		64
Nonmarketable equity securities	2		—		2
Other real estate	2		—		2
Total assets at fair value	$	68	$	—	$	68

Quantitative Information About Level 3 Measurements

The following table presents quantitative information related to the significant unobservable inputs utilized in the Corporation's Level 3 recurring fair value measurement as of December 31, 2015 and December 31, 2014. The Corporation's Level 3 recurring fair value measurements include auction-rate securities where fair value is determined using an income approach based on a discounted cash flow model. The inputs in the table below reflect management's expectation of continued illiquidity in the secondary auction-rate securities market due to a lack of market activity for the issuers remaining in the portfolio, a lack of market incentives for issuer redemptions, and the expectation for a continuing low interest rate environment. The December 31, 2015 workout periods reflect management's expectation of the pace at which short-term interest rates could rise.



			Discounted Cash Flow Model
			Unobservable Input
	Fair Value (in millions)		Discount Rate	Workout Period (in years)
December 31, 2015
State and municipal securities (a)	$	9	3% - 8%	1 - 2
Equity and other non-debt securities (a)	67		4% - 9%	1
December 31, 2014
State and municipal securities (a)	$	23	3% - 9%	1 - 3
Equity and other non-debt securities (a)	112		4% - 8%	1 - 2


(a)	Auction-rate securities.

Estimated Fair Values Of Financial Instruments Not Recorded At Fair Value In Their Entirety On A Recurring Basis

The carrying amount and estimated fair value of financial instruments not recorded at fair value in their entirety on a recurring basis on the Corporation’s consolidated balance sheets are as follows:



	Carrying Amount			Estimated Fair Value
(in millions)				Total			Level 1		Level 2		Level 3
December 31, 2015
Assets
Cash and due from banks	$	1,157		$	1,157		$	1,157	$	—	$	—
Interest-bearing deposits with banks	4,990			4,990			4,990		—		—
Investment securities held-to-maturity	1,981			1,973			—		1,973		—
Loans held-for-sale (a)	21			21			—		21		—
Total loans, net of allowance for loan losses (b)	48,450			48,269			—		—		48,269
Customers’ liability on acceptances outstanding	5			5			5		—		—
Nonmarketable equity securities (c)	10			18			—		—		18
Restricted equity investments	92			92			92		—		—
Liabilities
Demand deposits (noninterest-bearing)	30,839			30,839			—		30,839		—
Interest-bearing deposits	25,462			25,462			—		25,462		—
Customer certificates of deposit	3,552			3,536			—		3,536		—
Total deposits	59,853			59,837			—		59,837		—
Short-term borrowings	23			23			23		—		—
Acceptances outstanding	5			5			5		—		—
Medium- and long-term debt	3,058			3,032			—		3,032		—
Credit-related financial instruments	(83		)	(83		)	—		—		(83		)
December 31, 2014
Assets
Cash and due from banks	$	1,026		$	1,026		$	1,026	$	—	$	—
Interest-bearing deposits with banks	5,045			5,045			5,045		—		—
Investment securities held-to-maturity	1,935			1,933			—		1,933		—
Loans held-for-sale (a)	5			5			—		5		—
Total loans, net of allowance for loan losses (b)	47,999			47,932			—		—		47,932
Customers’ liability on acceptances outstanding	10			10			10		—		—
Nonmarketable equity securities (c)	11			18			—		—		18
Restricted equity investments	92			92			92		—		—
Liabilities
Demand deposits (noninterest-bearing)	27,224			27,224			—		27,224		—
Interest-bearing deposits	25,841			25,841			—		25,841		—
Customer certificates of deposit	4,421			4,411			—		4,411		—
Total deposits	57,486			57,476			—		57,476		—
Short-term borrowings	116			116			116		—		—
Acceptances outstanding	10			10			10		—		—
Medium- and long-term debt	2,675			2,681			—		2,681		—
Credit-related financial instruments	(85		)	(85		)	—		—		(85		)


(a)	Included $8 million and no impaired loans held-for-sale recorded at fair value on a nonrecurring basis at December 31, 2015 and 2014, respectively.


(b)	Included $153 million and $64 million of impaired loans recorded at fair value on a nonrecurring basis at December 31, 2015 and 2014, respectively.


(c)	Included $1 million and $2 million of nonmarketable equity securities recorded at fair value on a nonrecurring basis at December 31, 2015 and 2014, respectively.