Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

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, 2020 and December 31, 2019.


(in millions)	Total		Level 1		Level 2		Level 3
September 30, 2020

Deferred compensation plan assets	$	100	$	100	$	—	$	—
Equity securities	53		53		—		—


Investment securities available-for-sale:
U.S. Treasury and other U.S. government agency securities	4,683		4,683		—		—
Residential mortgage-backed securities (a)	10,407		—		10,407		—



Total investment securities available-for-sale	15,090		4,683		10,407		—
Derivative assets:
Interest rate contracts	601		—		559		42
Energy derivative contracts	214		—		214		—
Foreign exchange contracts	10		—		10		—
Total derivative assets	825		—		783		42
Total assets at fair value	$	16,068	$	4,836	$	11,190	$	42
Derivative liabilities:
Interest rate contracts	$	68	$	—	$	68	$	—
Energy derivative contracts	209		—		209		—
Foreign exchange contracts	10		—		10		—

Total derivative liabilities	287		—		287		—
Deferred compensation plan liabilities	100		100		—		—
Total liabilities at fair value	$	387	$	100	$	287	$	—
December 31, 2019
Deferred compensation plan assets	$	95	$	95	$	—	$	—
Equity securities	54		54		—		—

Investment securities available-for-sale:
U.S. Treasury and other U.S. government agency securities	2,792		2,792		—		—
Residential mortgage-backed securities (a)	9,606		—		9,606		—



Total investment securities available-for-sale	12,398		2,792		9,606		—
Derivative assets:
Interest rate contracts	211		—		189		22
Energy derivative contracts	96		—		96		—
Foreign exchange contracts	10		—		10		—

Total derivative assets	317		—		295		22
Total assets at fair value	$	12,864	$	2,941	$	9,901	$	22
Derivative liabilities:
Interest rate contracts	$	39	$	—	$	39	$	—
Energy derivative contracts	92		—		92		—
Foreign exchange contracts	10		—		10		—

Total derivative liabilities	141		—		141		—
Deferred compensation plan liabilities	95		95		—		—
Total liabilities at fair value	$	236	$	95	$	141	$	—

(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- and nine-month periods ended September 30, 2020 and 2019.


			Net Realized/Unrealized Gains (Losses) (Pretax) Recorded in Earnings (a)
	Balance at Beginning of Period											Balance at End of Period
									Sales
(in millions)			Realized		Unrealized
Three Months Ended September 30, 2020






Derivative assets:
Interest rate contracts	$	44	$	—	$	(2)	$	—		$	42

Three Months Ended September 30, 2019






Derivative assets:
Interest rate contracts	$	21	$	1	$	7	$	(1)		$	28

Nine Months Ended September 30, 2020






Derivative assets:
Interest rate contracts	$	22	$	—	$	20	$	—		$	42

Nine Months Ended September 30, 2019






Derivative assets:
Interest rate contracts	$	9	$	1	$	19	$	(1)		$	28

(a)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.

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, 2020 and December 31, 2019. No liabilities were recorded at fair value on a nonrecurring basis at September 30, 2020 and December 31, 2019.


(in millions)	Level 3
September 30, 2020


Loans:
Commercial	$	129

Commercial mortgage	5







Total assets at fair value	$	134
December 31, 2019


Loans:
Commercial	$	70









Total assets at fair value	$	70

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, 2020
Assets
Cash and due from banks	$	988	$	988	$	988	$	—	$	—

Interest-bearing deposits with banks	10,153		10,153		10,153		—		—

Loans held-for-sale	7		7		—		7		—
Total loans, net of allowance for loan losses (a)	51,391		51,926		—		—		51,926
Customers’ liability on acceptances outstanding	2		2		2		—		—
Restricted equity investments	207		207		207		—		—
Nonmarketable equity securities (b)	5		9
Liabilities
Demand deposits (noninterest-bearing)	36,533		36,533		—		36,533		—
Interest-bearing deposits	29,626		29,626		—		29,626		—
Customer certificates of deposit	2,300		2,302		—		2,302		—

Total deposits	68,459		68,461		—		68,461		—
Short-term borrowings	10		10		10		—		—
Acceptances outstanding	2		2		2		—		—
Medium- and long-term debt	5,754		5,741		—		5,741		—
Credit-related financial instruments	(85)		(85)		—		—		(85)
December 31, 2019
Assets
Cash and due from banks	$	973	$	973	$	973	$	—	$	—

Interest-bearing deposits with banks	4,845		4,845		4,845		—		—

Loans held-for-sale	6		6		—		6		—
Total loans, net of allowance for loan losses (a)	49,732		49,975		—		—		49,975
Customers’ liability on acceptances outstanding	2		2		2		—		—
Restricted equity investments	248		248		248		—		—
Nonmarketable equity securities (b)	5		10
Liabilities
Demand deposits (noninterest-bearing)	27,382		27,382		—		27,382		—
Interest-bearing deposits	26,802		26,802		—		26,802		—
Certificates of deposit	2,978		2,968		—		2,968		—
Other time deposits	133		133		—		133		—
Total deposits	57,295		57,285		—		57,285		—
Short-term borrowings	71		71		71		—		—
Acceptances outstanding	2		2		2		—		—
Medium- and long-term debt	7,269		7,316		—		7,316		—
Credit-related financial instruments	(57)		(57)		—		—		(57)

(a)Included $134 million and $70 million of loans recorded at fair value on a nonrecurring basis at September 30, 2020 and December 31, 2019, 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.