Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

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, 2022 and December 31, 2021.


(in millions)	Total		Level 1		Level 2		Level 3
September 30, 2022

Deferred compensation plan assets	$	87	$	87	$	—	$	—
Equity securities	53		53		—		—


Investment securities available-for-sale:
U.S. Treasury securities	2,756		2,756		—		—
Residential mortgage-backed securities (a)	12,052		—		12,052		—
Commercial mortgage-backed securities (a)	4,644		—		4,644		—



Total investment securities available-for-sale	19,452		2,756		16,696		—
Derivative assets:
Interest rate contracts	212		—		212		—
Energy contracts	1,325		—		1,325		—
Foreign exchange contracts	80		—		80		—
Total derivative assets	1,617		—		1,617		—
Total assets at fair value	$	21,209	$	2,896	$	18,313	$	—
Derivative liabilities:
Interest rate contracts	$	741	$	—	$	741	$	—
Energy contracts	1,316		—		1,316		—
Foreign exchange contracts	74		—		74		—
Other financial derivative	12		—		—		12
Total derivative liabilities	2,143		—		2,131		12
Deferred compensation plan liabilities	87		87		—		—
Total liabilities at fair value	$	2,230	$	87	$	2,131	$	12
December 31, 2021
Deferred compensation plan assets	$	113	$	113	$	—	$	—
Equity securities	62		62		—		—

Investment securities available-for-sale:
U.S. Treasury securities	2,993		2,993		—		—
Residential mortgage-backed securities (a)	13,288		—		13,288		—



Commercial mortgage-backed securities (a)	705		—		705		—
Total investment securities available-for-sale	16,986		2,993		13,993		—
Derivative assets:
Interest rate contracts	239		—		213		26
Energy contracts	670		—		670		—
Foreign exchange contracts	19		—		19		—

Total derivative assets	928		—		902		26
Total assets at fair value	$	18,089	$	3,168	$	14,895	$	26
Derivative liabilities:
Interest rate contracts	$	69	$	—	$	69	$	—
Energy contracts	662		—		662		—
Foreign exchange contracts	16		—		16		—
Other financial derivative	13		—		—		13
Total derivative liabilities	760		—		747		13
Deferred compensation plan liabilities	113		113		—		—
Total liabilities at fair value	$	873	$	113	$	747	$	13

(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, 2022 and 2021.


			Net Realized/Unrealized Gains (Losses) (Pretax) Recorded in Earnings (a)
(in millions)	Balance at Beginning of Period		Realized		Unrealized				Settlements			Balance at End of Period
Three Months Ended September 30, 2022









Derivative liabilities:
Other financial derivative	$	(12)	$	—	$	—	$	—		$	(12)
Three Months Ended September 30, 2021






Derivative assets:
Interest rate contracts	$	29	$	—	$	(2)	$	—		$	27
Derivative liabilities:
Other financial derivative	(12)		—		—				—			(12)

Nine Months Ended September 30, 2022






Derivative assets:
Interest rate contracts	$	26	$	—	$	—	$	(26)		$	—
Derivative liabilities:
Other financial derivative	(13)		—		1				—			(12)

Nine Months Ended September 30, 2021






Derivative assets:
Interest rate contracts	$	39	$	—	$	(12)	$	—		$	27
Derivative liabilities:
Other financial derivative	(11)		—		(1)				—			(12)

(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, 2022 and December 31, 2021. No liabilities were recorded at fair value on a nonrecurring basis at September 30, 2022 and December 31, 2021.


(in millions)	Level 3
September 30, 2022


Loans:
Commercial	$	53
Real estate construction	2
Commercial mortgage	14







Total assets at fair value	$	69
December 31, 2021


Loans:
Commercial	$	125
Real estate construction	4
Commercial mortgage	17

International	4





Total assets at fair value	$	150

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, 2022
Assets
Cash and due from banks	$	1,735	$	1,735	$	1,735	$	—	$	—

Interest-bearing deposits with banks	4,235		4,235		4,235		—		—

Other short-term investments	16		16		16		—		—
Loans held-for-sale	3		3		—		3		—
Total loans, net of allowance for loan losses (a)	51,136		48,521		—		—		48,521
Customers’ liability on acceptances outstanding	5		5		5		—		—
Restricted equity investments	113		113		113		—		—
Nonmarketable equity securities (b)	5		12
Liabilities
Demand deposits (noninterest-bearing)	42,296		42,296		—		42,296		—
Interest-bearing deposits	29,059		29,059		—		29,059		—
Customer certificates of deposit	1,661		1,621		—		1,621		—
Total deposits	73,016		72,976		—		72,976		—

Acceptances outstanding	5		5		5		—		—
Medium- and long-term debt	3,016		3,035		—		3,035		—
Credit-related financial instruments	(76)		(76)		—		—		(76)
December 31, 2021
Assets
Cash and due from banks	$	1,236	$	1,236	$	1,236	$	—	$	—

Interest-bearing deposits with banks	21,443		21,443		21,443		—		—

Other short-term investments	16		16		16		—		—
Loans held-for-sale	6		6		—		6		—
Total loans, net of allowance for loan losses (a)	48,697		49,127		—		—		49,127
Customers’ liability on acceptances outstanding	5		5		5		—		—
Restricted equity investments	92		92		92		—		—
Nonmarketable equity securities (b)	5		10
Liabilities
Demand deposits (noninterest-bearing)	45,800		45,800		—		45,800		—
Interest-bearing deposits	34,566		34,566		—		34,566		—
Customer certificates of deposit	1,973		1,968		—		1,968		—

Total deposits	82,339		82,334		—		82,334		—

Acceptances outstanding	5		5		5		—		—
Medium- and long-term debt	2,796		2,854		—		2,854		—
Credit-related financial instruments	(59)		(59)		—		—		(59)

(a)Included $69 million and $150 million of loans recorded at fair value on a nonrecurring basis at September 30, 2022 and December 31, 2021, 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.