XML 73 R56.htm IDEA: XBRL DOCUMENT v3.24.0.1
Fair value measurements (Tables)
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis

The following tables present assets and liabilities at December 31, 2023 and 2022 measured at estimated fair value on a recurring basis:

(Dollars in millions)

 

Fair Value Measurements

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Trading account

 

$

106

 

 

$

101

 

 

$

5

 

 

$

—

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

7,705

 

 

 

—

 

 

 

7,705

 

 

 

—

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

416

 

 

 

—

 

 

 

416

 

 

 

—

 

Residential

 

 

2,154

 

 

 

—

 

 

 

2,154

 

 

 

—

 

Other debt securities

 

 

165

 

 

 

—

 

 

 

165

 

 

 

—

 

 

 

 

10,440

 

 

 

—

 

 

 

10,440

 

 

 

—

 

Equity securities

 

 

268

 

 

 

258

 

 

 

10

 

 

 

—

 

Real estate loans held for sale

 

 

379

 

 

 

—

 

 

 

379

 

 

 

—

 

Other assets (a)

 

 

324

 

 

 

—

 

 

 

309

 

 

 

15

 

Total assets

 

$

11,517

 

 

$

359

 

 

$

11,143

 

 

$

15

 

Other liabilities (a)

 

$

943

 

 

$

—

 

 

$

911

 

 

$

32

 

Total liabilities

 

$

943

 

 

$

—

 

 

$

911

 

 

$

32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Trading account

 

$

118

 

 

$

118

 

 

$

—

 

 

$

—

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

7,671

 

 

 

—

 

 

 

7,671

 

 

 

—

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

574

 

 

 

—

 

 

 

574

 

 

 

—

 

Residential

 

 

2,330

 

 

 

—

 

 

 

2,330

 

 

 

—

 

Other debt securities

 

 

174

 

 

 

—

 

 

 

174

 

 

 

—

 

 

 

 

10,749

 

 

 

—

 

 

 

10,749

 

 

 

—

 

Equity securities

 

 

151

 

 

 

145

 

 

 

6

 

 

 

—

 

Real estate loans held for sale

 

 

162

 

 

 

—

 

 

 

162

 

 

 

—

 

Other assets (a)

 

 

435

 

 

 

—

 

 

 

435

 

 

 

—

 

Total assets

 

$

11,615

 

 

$

263

 

 

$

11,352

 

 

$

—

 

Other liabilities (a)

 

$

1,355

 

 

$

—

 

 

$

1,309

 

 

$

46

 

Total liabilities

 

$

1,355

 

 

$

—

 

 

$

1,309

 

 

$

46

 

 

(a)
Comprised predominantly of interest rate swap agreements used for interest rate risk management (Level 2), interest rate and foreign exchange contracts not designated as hedging instruments (Level 2), commitments to sell real estate loans (Level 2) and commitments to originate real estate loans to be held for sale (Level 3).
Changes in Level 3 Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the years ended December 31, 2023, 2022 and 2021 were as follows:

 

 

Other Assets and Other Liabilities

 

(Dollars in millions)

 

2023

 

 

2022

 

 

2021

 

Beginning balance

 

$

(46

)

 

$

6

 

 

$

43

 

Total gains (losses) realized/unrealized:

 

 

 

 

 

 

 

 

 

Included in earnings (a)

 

 

36

 

 

 

(34

)

 

 

126

 

Transfers out of Level 3 (b)

 

 

(7

)

 

 

(18

)

 

 

(163

)

Ending balance

 

$

(17

)

 

$

(46

)

 

$

6

 

Changes in net unrealized gains (losses) included in earnings
   related to instruments still held at period end (a)

 

$

15

 

 

$

(46

)

 

$

9

 

 

(a)
Reported as "mortgage banking revenues" in the Consolidated Statement of Income and includes the fair value of commitment issuances and expirations.
(b)
Transfers out of Level 3 consist of interest rate locks transferred to closed loans.
Quantitative Information Related to Significant Unobservable Inputs

The following tables present quantitative information about significant unobservable inputs used in the fair value measurements for Level 3 assets and liabilities at December 31, 2023 and 2022:

(Dollars in millions)

 

Fair Value

 

 

Valuation
Technique

 

Unobservable
Inputs / Assumptions

 

Range
(Weighted-
Average)

December 31, 2023

 

 

 

 

 

 

 

 

 

Recurring fair value measurements

 

 

 

 

 

 

 

 

 

Net other assets (liabilities) (a)

 

$

(17

)

 

Discounted cash flow

 

Commitment expirations

 

0% - 99% (5%)

 

 

 

 

 

 

 

 

 

 

December 31, 2022

 

 

 

 

 

 

 

 

 

Recurring fair value measurements

 

 

 

 

 

 

 

 

 

Net other assets (liabilities) (a)

 

$

(46

)

 

Discounted cash flow

 

Commitment expirations

 

0% - 97% (3%)

 

(a)
Other Level 3 assets (liabilities) consist of commitments to originate real estate loans.
Carrying Amounts and Estimated Fair Value for Financial Instrument Assets (Liabilities)

The carrying amounts and estimated fair value for financial instrument assets (liabilities) are presented in the following tables:

 

 

December 31, 2023

 

(Dollars in millions)

 

Carrying
Amount

 

 

Estimated
 Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,731

 

 

$

1,731

 

 

$

1,668

 

 

$

63

 

 

$

—

 

Interest-bearing deposits at banks

 

 

28,069

 

 

 

28,069

 

 

 

—

 

 

 

28,069

 

 

 

—

 

Trading account

 

 

106

 

 

 

106

 

 

 

101

 

 

 

5

 

 

 

—

 

Investment securities

 

 

26,897

 

 

 

25,875

 

 

 

258

 

 

 

25,571

 

 

 

46

 

Loans and leases, net

 

 

131,939

 

 

 

129,138

 

 

 

—

 

 

 

7,240

 

 

 

121,898

 

Accrued interest receivable

 

 

786

 

 

 

786

 

 

 

—

 

 

 

786

 

 

 

—

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

(49,294

)

 

$

(49,294

)

 

$

—

 

 

$

(49,294

)

 

$

—

 

Savings and interest-checking deposits

 

 

(93,221

)

 

 

(93,221

)

 

 

—

 

 

 

(93,221

)

 

 

—

 

Time deposits

 

 

(20,759

)

 

 

(20,715

)

 

 

—

 

 

 

(20,715

)

 

 

—

 

Short-term borrowings

 

 

(5,316

)

 

 

(5,316

)

 

 

—

 

 

 

(5,316

)

 

 

—

 

Long-term borrowings

 

 

(8,201

)

 

 

(8,107

)

 

 

—

 

 

 

(8,107

)

 

 

—

 

Accrued interest payable

 

 

(482

)

 

 

(482

)

 

 

—

 

 

 

(482

)

 

 

—

 

Other financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments to originate real estate
   loans for sale

 

$

(17

)

 

$

(17

)

 

$

—

 

 

$

—

 

 

$

(17

)

Commitments to sell real estate loans

 

 

30

 

 

 

30

 

 

 

—

 

 

 

30

 

 

 

—

 

Other credit-related commitments

 

 

(154

)

 

 

(154

)

 

 

—

 

 

 

—

 

 

 

(154

)

Interest rate swap agreements used
   for interest rate risk management

 

 

10

 

 

 

10

 

 

 

—

 

 

 

10

 

 

 

—

 

Interest rate and foreign exchange contracts
   not designated as hedging instruments

 

 

(642

)

 

 

(642

)

 

 

—

 

 

 

(642

)

 

 

—

 

 

 

 

December 31, 2022

 

(Dollars in millions)

 

Carrying
Amount

 

 

Estimated
Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,517

 

 

$

1,517

 

 

$

1,372

 

 

$

145

 

 

$

—

 

Interest-bearing deposits at banks

 

 

24,959

 

 

 

24,959

 

 

 

—

 

 

 

24,959

 

 

 

—

 

Federal funds sold

 

 

3

 

 

 

3

 

 

 

—

 

 

 

3

 

 

 

—

 

Trading account

 

 

118

 

 

 

118

 

 

 

118

 

 

 

—

 

 

 

—

 

Investment securities

 

 

25,211

 

 

 

24,056

 

 

 

145

 

 

 

23,860

 

 

 

51

 

Loans and leases, net

 

 

129,639

 

 

 

126,228

 

 

 

—

 

 

 

7,180

 

 

 

119,048

 

Accrued interest receivable

 

 

646

 

 

 

646

 

 

 

—

 

 

 

646

 

 

 

—

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

(65,502

)

 

$

(65,502

)

 

$

—

 

 

$

(65,502

)

 

$

—

 

Savings and interest-checking deposits

 

 

(87,911

)

 

 

(87,911

)

 

 

—

 

 

 

(87,911

)

 

 

—

 

Time deposits

 

 

(10,102

)

 

 

(10,143

)

 

 

—

 

 

 

(10,143

)

 

 

—

 

Short-term borrowings

 

 

(3,555

)

 

 

(3,555

)

 

 

—

 

 

 

(3,555

)

 

 

—

 

Long-term borrowings

 

 

(3,965

)

 

 

(3,926

)

 

 

—

 

 

 

(3,926

)

 

 

—

 

Accrued interest payable

 

 

(81

)

 

 

(81

)

 

 

—

 

 

 

(81

)

 

 

—

 

Other financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments to originate real estate
   loans for sale

 

$

(46

)

 

$

(46

)

 

$

—

 

 

$

—

 

 

$

(46

)

Commitments to sell real estate loans

 

 

54

 

 

 

54

 

 

 

—

 

 

 

54

 

 

 

—

 

Other credit-related commitments

 

 

(149

)

 

 

(149

)

 

 

—

 

 

 

—

 

 

 

(149

)

Interest rate swap agreements used
   for interest rate risk management

 

 

(8

)

 

 

(8

)

 

 

—

 

 

 

(8

)

 

 

—

 

Interest rate and foreign exchange contracts
   not designated as hedging instruments

 

 

(920

)

 

 

(920

)

 

 

—

 

 

 

(920

)

 

 

—