Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2018

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 September 30, 2018 and December 31, 2017.



(in millions)	Total		Level 1		Level 2		Level 3
September 30, 2018
Deferred compensation plan assets	$	94	$	94	$	—	$	—
Equity securities	40		40		—		—
Investment securities available-for-sale:
U.S. Treasury and other U.S. government agency securities	2,699		2,699		—		—
Residential mortgage-backed securities (a)	9,163		—		9,163		—
Total investment securities available-for-sale	11,862		2,699		9,163		—
Derivative assets:
Interest rate contracts	31		—		29		2
Energy derivative contracts	219		—		219		—
Foreign exchange contracts	17		—		17		—
Warrants	2		—		—		2
Total derivative assets	269		—		265		4
Total assets at fair value	$	12,265	$	2,833	$	9,428	$	4
Derivative liabilities:
Interest rate contracts	$	131	$	—	$	131	$	—
Energy derivative contracts	219		—		219		—
Foreign exchange contracts	14		—		14		—
Total derivative liabilities	364		—		364		—
Deferred compensation plan liabilities	94		94		—		—
Total liabilities at fair value	$	458	$	94	$	364	$	—
December 31, 2017
Trading securities:
Deferred compensation plan assets	$	92	$	92	$	—	$	—
Investment securities available-for-sale:
U.S. Treasury and other U.S. government agency securities	2,727		2,727		—		—
Residential mortgage-backed securities (a)	8,124		—		8,124		—
State and municipal securities	5		—		—		5		(b)
Equity and other non-debt securities	82		38		—		44		(b)
Total investment securities available-for-sale	10,938		2,765		8,124		49
Derivative assets:
Interest rate contracts	57		—		43		14
Energy derivative contracts	93		—		93		—
Foreign exchange contracts	42		—		42		—
Warrants	2		—		—		2
Total derivative assets	194		—		178		16
Total assets at fair value	$	11,224	$	2,857	$	8,302	$	65
Derivative liabilities:
Interest rate contracts	$	59	$	—	$	59	$	—
Energy derivative contracts	91		—		91		—
Foreign exchange contracts	40		—		40		—
Total derivative liabilities	190		—		190		—
Deferred compensation plan liabilities	92		92		—		—
Total liabilities at fair value	$	282	$	92	$	190	$	—


(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 and liabilities measured at fair value on a recurring basis for the three- and nine-month periods ended September 30, 2018 and 2017.



						Net Realized/Unrealized Gains (Losses) (Pretax)
	Balance at Beginning of Period					Recorded in Earnings							Recorded in Other Comprehensive Income						Balance at End of Period
			Change in Classification (a)													Sales and Redemptions
(in millions)						Realized			Unrealized
Three Months Ended September 30, 2018
Derivative assets:
Interest rate contracts	$	6	$	—		$	—		$	(4	)	(b)	$	—		$	—		$	2
Warrants	2		—			2		(b)	—				—			(2		)	2
Three Months Ended September 30, 2017
Investment securities available-for-sale:
State and municipal securities (c)	$	5	$	—		$	—		$	—			$	—		$	—		$	5
Equity and other non-debt securities (c)	46		—			—			—				(1		)	—			45
Total investment securities available-for-sale	51		—			—			—				(1		)	—			50
Derivative assets:
Interest rate contracts	13		—			—			1			(b)	—			—			14
Warrants	2		—			—			—				—			—			2
Nine Months Ended September 30, 2018
Equity securities	$	—	$	44		$	—		$	—			$	—		$	(44	)	$	—
Investment securities available-for-sale:
State and municipal securities (c)	5		—			—			—				—			(5		)	—
Equity and other non-debt securities (c)	44		(44		)	—			—				—			—			—
Total investment securities available-for-sale	49		(44		)	—			—				—			(5		)	—
Derivative assets:
Interest rate contracts	14		—			—			(12		)	(b)	—			—			2
Warrants	2		—			3		(b)	—				—			(3		)	2
Nine Months Ended September 30, 2017
Investment securities available-for-sale:
State and municipal securities (c)	$	7	$	—		$	—		$	—			$	—		$	(2	)	$	5
Equity and other non-debt securities (c)	47		—			—			—				(1		)	(1		)	45
Total investment securities available-for-sale	54		—			—			—				(1		)	(3		)	50
Derivative assets:
Interest rate contracts	11		—			—			3			(b)	—			—			14
Warrants	3		—			5		(b)	(1		)	(b)	—			(5		)	2


(a)	Reflects the reclassification of equity securities resulting from the adoption of ASU 2016-01.


(b)	Realized and unrealized gains and losses due to changes in fair value recorded in Other Noninterest Income on the Consolidated Statements of Comprehensive Income.


(c)	Auction-rate securities.

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 September 30, 2018 and December 31, 2017. No liabilities were recorded at fair value on a nonrecurring basis at September 30, 2018 and December 31, 2017.



(in millions)	Level 3
September 30, 2018
Loans:
Commercial	$	54
Commercial mortgage	4
Total loans	58
Other real estate	1
Total assets at fair value	$	59
December 31, 2017
Loans:
Commercial	$	111
Commercial mortgage	5
Total assets at fair value	$	116

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
September 30, 2018
Assets
Cash and due from banks	$	945		$	945		$	945	$	—	$	—
Interest-bearing deposits with banks	4,894			4,894			4,894		—		—
Loans held-for-sale	2			2			—		2		—
Total loans, net of allowance for loan losses (a)	48,346			48,352			—		—		48,352
Customers’ liability on acceptances outstanding	4			4			4		—		—
Restricted equity investments	248			248			248		—		—
Nonmarketable equity securities (b)	6			11
Liabilities
Demand deposits (noninterest-bearing)	29,301			29,301			—		29,301		—
Interest-bearing deposits	24,654			24,654			—		24,654		—
Customer certificates of deposit	2,051			2,013			—		2,013		—
Total deposits	56,006			55,968			—		55,968		—
Short-term borrowings	84			84			84		—		—
Acceptances outstanding	4			4			4		—		—
Medium- and long-term debt	6,418			6,431			—		6,431		—
Credit-related financial instruments	(57		)	(57		)	—		—		(57		)
December 31, 2017
Assets
Cash and due from banks	$	1,438		$	1,438		$	1,438	$	—	$	—
Interest-bearing deposits with banks	4,407			4,407			4,407		—		—
Investment securities held-to-maturity	1,266			1,246			—		1,246		—
Loans held-for-sale	4			4			—		4		—
Total loans, net of allowance for loan losses (a)	48,461			48,153			—		—		48,153
Customers’ liability on acceptances outstanding	2			2			2		—		—
Restricted equity investments	207			207			207		—		—
Nonmarketable equity securities (b)	6			9
Liabilities
Demand deposits (noninterest-bearing)	32,071			32,071			—		32,071		—
Interest-bearing deposits	23,667			23,667			—		23,667		—
Customer certificates of deposit	2,165			2,142			—		2,142		—
Total deposits	57,903			57,880			—		57,880		—
Short-term borrowings	10			10			10		—		—
Acceptances outstanding	2			2			2		—		—
Medium- and long-term debt	4,622			4,636			—		4,636		—
Credit-related financial instruments	(67		)	(67		)	—		—		(67		)


(a)	Included $58 million and $116 million of impaired loans recorded at fair value on a nonrecurring basis at September 30, 2018 and December 31, 2017, respectively.


(b)	Certain investments that are measured at fair value using the net asset value have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets.