Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2023

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 June 30, 2023 and December 31, 2022.


(in millions)	Total		Level 1		Level 2		Level 3
June 30, 2023

Deferred compensation plan assets	$	101	$	101	$	—	$	—
Equity securities	43		43		—		—


Investment securities available-for-sale:
U.S. Treasury securities	1,672		1,672		—		—
Residential mortgage-backed securities (a)	11,062		—		11,062		—
Commercial mortgage-backed securities (a)	4,681		—		4,681		—



Total investment securities available-for-sale	17,415		1,672		15,743		—
Derivative assets:
Interest rate contracts	261		—		261		—
Energy contracts	805		—		805		—
Foreign exchange contracts	59		—		59		—
Total derivative assets	1,125		—		1,125		—
Total assets at fair value	$	18,684	$	1,816	$	16,868	$	—
Derivative liabilities:
Interest rate contracts	$	647	$	—	$	647	$	—
Energy contracts	785		—		785		—
Foreign exchange contracts	54		—		54		—
Other financial derivative liabilities	14		—		—		14
Total derivative liabilities	1,500		—		1,486		14
Deferred compensation plan liabilities	101		101		—		—
Total liabilities at fair value	$	1,601	$	101	$	1,486	$	14
December 31, 2022
Deferred compensation plan assets	$	92	$	92	$	—	$	—
Equity securities	44		44		—		—

Investment securities available-for-sale:
U.S. Treasury securities	2,664		2,664		—		—
Residential mortgage-backed securities (a)	11,655		—		11,655		—



Commercial mortgage-backed securities (a)	4,693		—		4,693		—
Total investment securities available-for-sale	19,012		2,664		16,348		—
Derivative assets:
Interest rate contracts	206		—		206		—
Energy contracts	1,020		—		1,020		—
Foreign exchange contracts	53		—		53		—

Total derivative assets	1,279		—		1,279		—
Total assets at fair value	$	20,427	$	2,800	$	17,627	$	—
Derivative liabilities:
Interest rate contracts	$	644	$	—	$	644	$	—
Energy contracts	1,006		—		1,006		—
Foreign exchange contracts	45		—		45		—
Other financial derivative liabilities	12		—		—		12
Total derivative liabilities	1,707		—		1,695		12
Deferred compensation plan liabilities	92		92		—		—
Total liabilities at fair value	$	1,799	$	92	$	1,695	$	12

(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 six-month periods ended June 30, 2023 and 2022.


			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 June 30, 2023









Derivative liabilities:
Other financial derivative liabilities	$	(12)	$	—	$	(2)	$	—		$	(14)
Three Months Ended June 30, 2022






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

Six Months Ended June 30, 2023








Derivative liabilities:
Other financial derivative liabilities	(12)		—		(2)				—			(14)

Six Months Ended June 30, 2022






Derivative assets:
Interest rate contracts	$	26	$	—	$	—	$	(26)		$	—
Derivative liabilities:
Other financial derivative liabilities	(13)		—		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 June 30, 2023 and December 31, 2022. No liabilities were recorded at fair value on a nonrecurring basis at June 30, 2023 and December 31, 2022.


(in millions)	Level 3
June 30, 2023


Loans:
Commercial	$	24
Real estate construction	2
Commercial mortgage	14

International	2


Total loans	42

Loans held-for-sale	218
Other real estate	5
Total assets at fair value	$	265
December 31, 2022


Loans:
Commercial	$	53
Real estate construction	2
Commercial mortgage	11


Total loans	66
Other real estate	9



Total assets at fair value	$	75

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
June 30, 2023
Assets
Cash and due from banks	$	1,413	$	1,413	$	1,413	$	—	$	—

Interest-bearing deposits with banks	8,810		8,810		8,810		—		—

Other short-term investments	24		24		24		—		—
Loans held-for-sale	3		3		—		3		—
Total loans, net of allowance for loan losses (a)	55,080		53,585		—		—		53,585
Customers’ liability on acceptances outstanding	3		3		3		—		—
Restricted equity investments	648		648		648		—		—
Nonmarketable equity securities (b)	6		11
Liabilities
Demand deposits (noninterest-bearing)	31,067		31,067		—		31,067		—
Interest-bearing deposits	27,159		27,159		—		27,159		—
Customer certificates of deposit	2,630		2,594		—		2,594		—
Other time deposits	5,159		5,203		—		5,203		—
Total deposits	66,015		66,023		—		66,023		—
Short-term borrowings	9,558		9,558		9,558		—		—
Acceptances outstanding	3		3		3		—		—
Medium- and long-term debt	6,961		6,891		—		6,891		—
Credit-related financial instruments	(77)		(77)		—		—		(77)
December 31, 2022
Assets
Cash and due from banks	$	1,758	$	1,758	$	1,758	$	—	$	—

Interest-bearing deposits with banks	4,524		4,524		4,524		—		—

Other short-term investments	19		19		19		—		—
Loans held-for-sale	2		2		—		2		—
Total loans, net of allowance for loan losses (a)	52,792		50,964		—		—		50,964
Customers’ liability on acceptances outstanding	3		3		3		—		—
Restricted equity investments	223		223		223		—		—
Nonmarketable equity securities (b)	5		12
Liabilities
Demand deposits (noninterest-bearing)	39,945		39,945		—		39,945		—
Interest-bearing deposits	29,566		29,566		—		29,566		—
Customer certificates of deposit	1,762		1,719		—		1,719		—
Other time deposits	124		124		—		124		—
Total deposits	71,397		71,354		—		71,354		—
Short-term borrowings	3,211		3,211		3,211		—		—
Acceptances outstanding	3		3		3		—		—
Medium- and long-term debt	3,024		3,071		—		3,071		—
Credit-related financial instruments	(79)		(79)		—		—		(79)

(a)Included $42 million and $66 million of loans recorded at fair value on a nonrecurring basis at June 30, 2023 and December 31, 2022, 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.