Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

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 March 31, 2019 and December 31, 2018.



(in millions)	Total		Level 1		Level 2		Level 3
March 31, 2019
Deferred compensation plan assets	$	91	$	91	$	—	$	—
Equity securities	43		43		—		—
Investment securities available-for-sale:
U.S. Treasury and other U.S. government agency securities	2,756		2,756		—		—
Residential mortgage-backed securities (a)	9,456		—		9,456		—
Total investment securities available-for-sale	12,212		2,756		9,456		—
Derivative assets:
Interest rate contracts	112		—		98		14
Energy derivative contracts	96		—		96		—
Foreign exchange contracts	15		—		15		—
Total derivative assets	223		—		209		14
Total assets at fair value	$	12,569	$	2,890	$	9,665	$	14
Derivative liabilities:
Interest rate contracts	$	47	$	—	$	47	$	—
Energy derivative contracts	93		—		93		—
Foreign exchange contracts	9		—		9		—
Total derivative liabilities	149		—		149		—
Deferred compensation plan liabilities	91		91		—		—
Total liabilities at fair value	$	240	$	91	$	149	$	—
December 31, 2018
Deferred compensation plan assets	$	88	$	88	$	—	$	—
Equity securities	43		43		—		—
Investment securities available-for-sale:
U.S. Treasury and other U.S. government agency securities	2,727		2,727		—		—
Residential mortgage-backed securities (a)	9,318		—		9,318		—
Total investment securities available-for-sale	12,045		2,727		9,318		—
Derivative assets:
Interest rate contracts	67		—		58		9
Energy derivative contracts	189		—		189		—
Foreign exchange contracts	19		—		19		—
Total derivative assets	275		—		266		9
Total assets at fair value	$	12,451	$	2,858	$	9,584	$	9
Derivative liabilities:
Interest rate contracts	$	70	$	—	$	70	$	—
Energy derivative contracts	186		—		186		—
Foreign exchange contracts	13		—		13		—
Total derivative liabilities	269		—		269		—
Deferred compensation plan liabilities	88		88		—		—
Total liabilities at fair value	$	357	$	88	$	269	$	—


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

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-month periods ended March 31, 2019 and 2018.



						Net Realized/Unrealized Gains (Losses) (Pretax) Recorded in Earnings (b)
	Balance at Beginning of Period		Change in Classification (a)											Balance at End of Period
											Sales and Redemptions
(in millions)						Realized		Unrealized			Sales and Redemptions
Three Months Ended March 31, 2019
Derivative assets:
Interest rate contracts	$	9	$	—		$	—	$	5		$	—		$	14
Three Months Ended March 31, 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		—			—		(7		)	—			7


(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 are 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 March 31, 2019 and December 31, 2018. No liabilities were recorded at fair value on a nonrecurring basis at March 31, 2019 and December 31, 2018.



(in millions)	Level 3
March 31, 2019
Loans:
Commercial	$	40
Commercial mortgage	2
Total assets at fair value	$	42
December 31, 2018
Loans:
Commercial	$	33
Commercial mortgage	2
Total assets at fair value	$	35

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
March 31, 2019
Assets
Cash and due from banks	$	1,063		$	1,063		$	1,063	$	—	$	—
Interest-bearing deposits with banks	2,418			2,418			2,418		—		—
Loans held-for-sale	2			2			—		2		—
Total loans, net of allowance for loan losses (a)	49,655			50,154			—		—		50,154
Customers’ liability on acceptances outstanding	4			4			4		—		—
Restricted equity investments	264			264			264		—		—
Nonmarketable equity securities (b)	6			10
Liabilities
Demand deposits (noninterest-bearing)	26,242			26,242			—		26,242		—
Interest-bearing deposits	25,073			25,073			—		25,073		—
Certificates of deposit	2,776			2,751			—		2,751		—
Total deposits	54,091			54,066			—		54,066		—
Short-term borrowings	935			935			935		—		—
Acceptances outstanding	4			4			4		—		—
Medium- and long-term debt	6,848			6,862			—		6,862		—
Credit-related financial instruments	(55		)	(55		)	—		—		(55		)
December 31, 2018
Assets
Cash and due from banks	$	1,390		$	1,390		$	1,390	$	—	$	—
Interest-bearing deposits with banks	3,171			3,171			3,171		—		—
Loans held-for-sale	3			3			—		3		—
Total loans, net of allowance for loan losses (a)	49,492			48,889			—		—		48,889
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)	28,690			28,690			—		28,690		—
Interest-bearing deposits	24,740			24,740			—		24,740		—
Certificates of deposit	2,131			2,100			—		2,100		—
Total deposits	55,561			55,530			—		55,530		—
Short-term borrowings	44			44			44		—		—
Acceptances outstanding	4			4			4		—		—
Medium- and long-term debt	6,463			6,436			—		6,436		—
Credit-related financial instruments	(57		)	(57		)	—		—		(57		)


(a)	Included $42 million and $35 million of impaired loans recorded at fair value on a nonrecurring basis at March 31, 2019 and December 31, 2018, 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.