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Fair value measurements (Tables)
 3 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis

The following tables present assets and liabilities at March 31, 2024 and December 31, 2023 measured at estimated fair value on a recurring basis:

(Dollars in millions)

 

Fair Value Measurements

 

 

Level 1

 

 

Level 2

 

 

Level 3 (a)

 

March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Trading account

 

$

99

 

 

$

99

 

 

$

—

 

 

$

—

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

7,719

 

 

 

—

 

 

 

7,719

 

 

 

—

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

1,343

 

 

 

—

 

 

 

1,343

 

 

 

—

 

Residential

 

 

2,910

 

 

 

—

 

 

 

2,910

 

 

 

—

 

Other debt securities

 

 

162

 

 

 

—

 

 

 

162

 

 

 

—

 

 

 

 

12,134

 

 

 

—

 

 

 

12,134

 

 

 

—

 

Equity securities

 

 

356

 

 

 

343

 

 

 

13

 

 

 

—

 

Real estate loans held for sale

 

 

728

 

 

 

—

 

 

 

728

 

 

 

—

 

Other assets (b)

 

 

318

 

 

 

—

 

 

 

312

 

 

 

6

 

Total assets

 

$

13,635

 

 

$

442

 

 

$

13,187

 

 

$

6

 

Other liabilities (b)

 

$

1,072

 

 

$

—

 

 

$

1,036

 

 

$

36

 

Total liabilities

 

$

1,072

 

 

$

—

 

 

$

1,036

 

 

$

36

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 (b)

 

 

324

 

 

 

—

 

 

 

309

 

 

 

15

 

Total assets

 

$

11,517

 

 

$

359

 

 

$

11,143

 

 

$

15

 

Other liabilities (b)

 

$

943

 

 

$

—

 

 

$

911

 

 

$

32

 

Total liabilities

 

$

943

 

 

$

—

 

 

$

911

 

 

$

32

 

 

(a)
Significant unobservable inputs used in the fair value measurement of commitments to originate real estate loans held for sale included weighted-average commitment expirations of 8% at March 31, 2024 and 5% at December 31, 2023. An increase (decrease) in the estimate of expirations for commitments to originate real estate loans would generally result in a lower (higher) fair value measurement. Estimated commitment expirations are derived considering loan type, changes in interest rates and remaining length of time until closing.
(b)
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).
Carrying Amounts and Estimated Fair Value for Certain Financial Instruments

The carrying amounts and estimated fair value for certain financial instruments that are not recorded at fair value in the Consolidated Balance Sheet are presented in the following tables:

(Dollars in millions)

 

Carrying
Amount

 

 

Estimated
 Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,695

 

 

$

1,695

 

 

$

1,396

 

 

$

299

 

 

$

—

 

Interest-bearing deposits at banks

 

 

32,144

 

 

 

32,144

 

 

 

—

 

 

 

32,144

 

 

 

—

 

Investment securities held to maturity

 

 

15,078

 

 

 

13,865

 

 

 

—

 

 

 

13,821

 

 

 

44

 

Loans and leases, net

 

 

132,782

 

 

 

129,771

 

 

 

—

 

 

 

7,354

 

 

 

122,417

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Time deposits

 

 

20,279

 

 

 

20,236

 

 

 

—

 

 

 

20,236

 

 

 

—

 

Short-term borrowings

 

 

4,795

 

 

 

4,795

 

 

 

—

 

 

 

4,795

 

 

 

—

 

Long-term borrowings

 

 

11,450

 

 

 

11,370

 

 

 

—

 

 

 

11,370

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

1,731

 

 

 

1,731

 

 

 

1,668

 

 

 

63

 

 

 

—

 

Interest-bearing deposits at banks

 

 

28,069

 

 

 

28,069

 

 

 

—

 

 

 

28,069

 

 

 

—

 

Investment securities held to maturity

 

 

15,330

 

 

 

14,308

 

 

 

—

 

 

 

14,262

 

 

 

46

 

Loans and leases, net

 

 

131,939

 

 

 

129,138

 

 

 

—

 

 

 

7,240

 

 

 

121,898

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

—