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Fair Values of Assets and Liabilities (Tables)
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Valuation Assumption Ranges for MSRs
The following table shows the significant valuation assumption ranges for MSRs at December 31, 2021:
 
     Minimum      Maximum      Weighted-
Average
(a)
  
Expected prepayment
     3 %       13 %       10 % 
Option adjusted spread
     6        11        7  
(a)
Determined based on the relative fair value of the related mortgage loans serviced.
Valuation Assumption Ranges for Derivative Commitments
The following table shows the significant valuation assumption ranges for the Company’s derivative commitments to purchase and originate mortgage loans at December 31, 2021:
 
     Minimum      Maximum      Weighted-
Average
(a)
  
Expected loan close rate
     2 %       100 %       80 % 
Inherent MSR value (basis points per loan)
     14        181        116  
(a)
Determined based on the relative fair value of the related mortgage loans.
Balances of Assets and Liabilities Measured at Fair Value on Recurring Basis
The following table summarizes the balances of assets and liabilities measured at fair value on a recurring basis:
 
(Dollars in Millions)   Level 1        Level 2        Level 3        Netting        Total  
December 31, 2021
                                                    
Available-for-sale
securities
                                                    
U.S. Treasury and agencies
   $ 30,917        $ 5,692        $ –        $ –        $ 36,609  
Mortgage-backed securities
                                                    
Residential agency
     –          77,079          –          –          77,079  
Commercial agency
     –          8,485          –          –          8,485  
Asset-backed securities
     –          59          7          –          66  
Obligations of state and political subdivisions
     –          10,716          1          –          10,717  
Other
     –          7          –          –          7  
Total
available-for-sale
     30,917          102,038          8          –          132,963  
Mortgage loans held for sale
     –          6,623          –          –          6,623  
Mortgage servicing rights
     –          –          2,953          –          2,953  
Derivative assets
     8          2,490          1,389          (1,609 )         2,278  
Other assets
     278          1,921          –          –          2,199  
Total
   $ 31,203        $ 113,072        $ 4,350        $ (1,609)        $ 147,016  
Derivative liabilities
   $ –        $ 2,308        $ 590        $ (1,589)        $ 1,309  
Short-term borrowings and other liabilities
(a)
     209          1,837          –          –          2,046  
Total
   $ 209        $ 4,145        $ 590        $ (1,589)        $ 3,355  
December 31, 2020
                                                    
Available-for-sale
securities
                                                    
U.S. Treasury and agencies
   $ 19,251        $ 3,140        $ –        $ –        $ 22,391  
Mortgage-backed securities
                                                    
Residential agency
     –          99,968          –          –          99,968  
Commercial agency
     –          5,406          –          –          5,406  
Asset-backed securities
     –          198          7          –          205  
Obligations of state and political subdivisions
     –          8,860          1          –          8,861  
Other
     –          9          –          –          9  
Total
available-for-sale
     19,251          117,581          8          –          136,840  
Mortgage loans held for sale
     –          8,524          –          –          8,524  
Mortgage servicing rights
     –          –          2,210          –          2,210  
Derivative assets
     4          3,235          2,762          (1,874 )         4,127  
Other assets
     302          1,601          –          –          1,903  
Total
   $ 19,557        $ 130,941        $ 4,980        $ (1,874)        $ 153,604  
Derivative liabilities
   $ –        $ 3,166        $ 436        $ (2,312)        $ 1,290  
Short-term borrowings and other liabilities
(a)
     85          1,672          –          –          1,757  
Total
   $ 85        $ 4,838        $ 436        $ (2,312)        $ 3,047  
Note: Excluded from the table above are equity investments without readily determinable fair values. The Company has elected to carry these investments at historical cost, adjusted for impairment and any changes resulting from observable price changes for identical or similar investments of the issuer. The aggregate carrying amount of these equity investments was $79 million and $85 million at December 31, 2021 and 2020, respectively. The Company has not recorded impairments or adjustments for observable price changes on these equity investments during 2021 and 2020, or on a cumulative basis.
(a)
Primarily represents the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance.
Changes in Fair Value for All Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)
The following table presents the changes in fair value for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31:
 
(Dollars in Millions)
  
Beginning
of Period
Balance
    
Net Gains
(Losses)
Included in
Net Income
    
Net Gains
(Losses)
Included in
Other
Comprehensive
Income (Loss)
    
Purchases
    
Sales
    
Principal
Payments
    
Issuances
    
Settlements
    
Transfers into
Level 3
    
End of
Period
Balance
    
Net Change
in Unrealized
Gains (Losses)
Relating to
Assets and
Liabilities
Held at
End of Period
  
2021
                                                                                        
Available-for-sale
securities
                                                                                        
Asset-backed securities
   $ 7     $ –     $ 1     $ –     $ –     $ (1 )    $ –     $ –     $ –     $ 7     $ 1  
Obligations of state and political subdivisions
     1       –       –       –       –       –       –       –       –       1       –  
Total
available-for-sale
     8       –       1       –       –       (1 )      –       –       –       8       1  
Mortgage servicing rights
     2,210       (437 )
(a)
 		     –       42       2       –       1,136
(c)
 		     –       –       2,953       (437 )
(a)
 
Net derivative assets and liabilities
     2,326       (924 )
(b)
 		     –       337       (3 )      –       –       (937 )      –       799       (968 )
(d)
 
                       
2020
                                                                                        
Available-for-sale
securities
                                                                                        
Asset-backed securities
   $ 8     $ –     $ –     $ –     $ –     $ (1 )    $ –     $ –     $ –     $ 7     $ –  
Obligations of state and political subdivisions
     1       –       –       –       –       –       –       –       –       1       –  
Total
available-for-sale
     9       –       –       –       –       (1 )      –       –       –       8       –  
Mortgage servicing rights
     2,546       (1,403 )
(a)
 		     –       34       3       –       1,030
(c)
 		     –       –       2,210       (1,403 )
(a)
 
Net derivative assets and liabilities
     810       2,922
(e)
 		     –       247       (3 )      –       –       (1,650 )      –       2,326       1,649
(f)
 
                       
2019
                                                                                        
Available-for-sale
securities
                                                                                        
Asset-backed securities
   $ –     $ –     $ –     $ –     $ –     $ –     $ –     $ –     $ 8     $ 8     $ –  
Obligations of state and political subdivisions
     –       –       –       –       –       –       –       –       1       1       –  
Total
available-for-sale
     –       –       –       –       –       –       –       –       9       9       –  
Mortgage servicing rights
     2,791       (829 )
(a)
 		     –       20       5       –       559
(c)
 		     –       –       2,546       (829 )
(a)
 
Net derivative assets and liabilities
     80       769
(g)
 		     –       142       (9 )      –       –       (172 )      –       810       782
(h)
 
(a)
Included in mortgage banking revenue.
(b)
Approximately $666 million, $(1.6) billion and $5 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.
(c)
Represents MSRs capitalized during the period.
(d)
Approximately $42 million, $(1.0) billion and $5 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.
(e)
Approximately $1.9 billion, $1.1 billion and $(70) million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.
(f)
Approximately $247 million, $1.5 billion and $(70) million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.
(g)
Approximately $482 million, $428 million and $(141) million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.
(h)
Approximately $35 million, $888 million and $(141) million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.
Adjusted Carrying Values for Assets Measured at Fair Value on Nonrecurring Basis
The Company is also required periodically to measure certain other financial assets at fair value on a nonrecurring basis. These measurements of fair value usually result from the application of
lower-of-cost-or-fair
value accounting or write-downs of individual assets.
The following table summarizes the balances as of the measurement date of assets measured at fair value on a nonrecurring basis, and still held as of December 31:
 
    2021      2020  
(Dollars in Millions)   Level 1        Level 2        Level 3        Total      Level 1        Level 2        Level 3        Total  
Loans
(a)
   $ –        $ –        $ 59        $ 59      $ –        $ –        $ 385        $ 385  
Other assets
(b)
     –          –          77          77        –          –          30          30  
(a)
Represents the carrying value of loans for which adjustments were based on the fair value of the collateral, excluding loans fully
charged-off.
(b)
Primarily represents the fair value of foreclosed properties that were measured at fair value based on an appraisal or broker price opinion of the collateral subsequent to their initial acquisition.
Losses Recognized Related to Nonrecurring Fair Value Measurements of Individual Assets or Portfolios
The following table summarizes losses recognized related to nonrecurring fair value measurements of individual assets or portfolios for the years ended December 31:
 
(Dollars in Millions)   2021        2020        2019  
Loans
(a)
   $ 60        $ 426        $ 122  
Other assets
(b)
     25          21          17  
(a)
Represents write-downs of loans which were based on the fair value of the collateral, excluding loans fully
charged-off.
(b)
Primarily represents related losses of foreclosed properties that were measured at fair value subsequent to their initial acquisition.
Differences Between Aggregate Fair Value Carrying Amount of MLHFS for which Fair Value Option has been Elected and Aggregate Unpaid Principal Amount Contractually Obligated to Receive at Maturity
The following table summarizes the differences between the aggregate fair value carrying amount of MLHFS for which the fair value option has been elected and the aggregate unpaid principal amount that the Company is contractually obligated to receive at maturity as of December 31:
 
    2021      2020  
(Dollars in Millions)   Fair Value
Carrying
Amount		        Aggregate
Unpaid
Principal		        Carrying
Amount Over
(Under) Unpaid
Principal		      Fair Value
Carrying
Amount		        Aggregate
Unpaid
Principal		        Carrying
Amount Over
(Under) Unpaid
Principal		  
Total loans
   $ 6,623        $ 6,453        $ 170      $ 8,524        $ 8,136        $ 388  
Nonaccrual loans
     1          1          —        1          1          —  
Loans 90 days or more past due
     2          2          —        2          2          —  
Estimated Fair Values of Financial Instruments
The estimated fair values of the Company’s financial instruments as of December 31, are shown in the table below:
 
    2021     2020  
   
Carrying
Amount
     Fair Value    
Carrying
Amount
     Fair Value  
(Dollars in Millions)   Level 1     Level 2     Level 3     Total     Level 1     Level 2     Level 3     Total  
                     
Financial Assets
                                      
 
                                        
Cash and due from banks
   $ 28,905     $ 28,905     $ –     $ –     $ 28,905     $ 62,580     $ 62,580     $ –     $ –     $ 62,580  
Federal funds sold and securities purchased under resale agreements
     359       –       359       –       359       377       –       377       –       377  
Investment securities
held-to-maturity
     41,858       –       41,812       –       41,812       –       –       –       –       –  
Loans held for sale
(a)
     1,152       –       –       1,152       1,152       237       –       –       237       237  
Loans
     306,304       –       –       312,724       312,724       290,393       –       –       300,419       300,419  
Other
(b)
     1,521       –       630       891       1,521       1,772       –       731       1,041       1,772  
                     
Financial Liabilities
                                      
 
                                        
Time deposits
     22,665       –       22,644       –       22,644       30,694       –       30,864       –       30,864  
Short-term borrowings
(c)
     9,750       –       9,646       –       9,646       10,009       –       9,956       –       9,956  
Long-term debt
     32,125       –       32,547       –       32,547       41,297       –       42,485       –       42,485  
Other
(d)
     3,862       –       1,170       2,692       3,862       4,052       –       1,234       2,818       4,052  
(a)
Excludes mortgages held for sale for which the fair value option under applicable accounting guidance was elected.
(b)
Includes investments in Federal Reserve Bank and Federal Home Loan Bank stock and
tax-advantaged
investments.
(c)
Excludes the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance.
(d)
Includes operating lease liabilities and liabilities related to
tax-advantaged
investments.