FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2020

Balances of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis:

TABLE 19.1


(in millions)	Level 1		Level 2		Level 3		Total
June 30, 2020
Assets Measured at Fair Value
Debt securities available for sale
U.S. Treasury	$	300	$	—	$	—	$	300
U.S. government agencies	—		152		—		152
U.S. government-sponsored entities	—		157		—		157
Residential mortgage-backed securities:
Agency mortgage-backed securities	—		1,200		—		1,200
Agency collateralized mortgage obligations	—		1,080		—		1,080

Commercial mortgage-backed securities	—		403		—		403
States of the U.S. and political subdivisions (municipals)	—		7		—		7
Other debt securities	—		2		—		2
Total debt securities available for sale	300		3,001		—		3,301
Loans held for sale	—		95		—		95





Derivative financial instruments
Trading	—		416		—		416
Not for trading	—		5		18		23
Total derivative financial instruments	—		421		18		439
Total assets measured at fair value on a recurring basis	$	300	$	3,517	$	18	$	3,835
Liabilities Measured at Fair Value
Derivative financial instruments
Trading	$	—	$	44	$	—	$	44
Not for trading	—		3		—		3
Total derivative financial instruments	—		47		—		47
Total liabilities measured at fair value on a recurring basis	$	—	$	47	$	—	$	47


(in millions)	Level 1		Level 2		Level 3		Total
December 31, 2019
Assets Measured at Fair Value
Debt securities available for sale

U.S. government agencies	$	—	$	151	$	—	$	151
U.S. government-sponsored entities	—		226		—		226
Residential mortgage-backed securities:
Agency mortgage-backed securities	—		1,314		—		1,314
Agency collateralized mortgage obligations	—		1,240		—		1,240

Commercial mortgage-backed securities	—		345		—		345
States of the U.S. and political subdivisions (municipals)	—		11		—		11
Other debt securities	—		2		—		2
Total debt securities available for sale	—		3,289		—		3,289
Loans held for sale	—		41		—		41





Derivative financial instruments
Trading	—		149		—		149
Not for trading	—		2		3		5
Total derivative financial instruments	—		151		3		154
Total assets measured at fair value on a recurring basis	$	—	$	3,481	$	3	$	3,484
Liabilities Measured at Fair Value
Derivative financial instruments
Trading	$	—	$	24	$	—	$	24
Not for trading	—		1		—		1
Total derivative financial instruments	—		25		—		25
Total liabilities measured at fair value on a recurring basis	$	—	$	25	$	—	$	25

Additional Information about Assets Measured at Fair Value on Recurring Basis

The following table presents additional information about assets measured at fair value on a recurring basis and for which we have utilized Level 3 inputs to determine fair value:

TABLE 19.2


(in millions)	Interest Rate Lock Commitments		Total
Six Months Ended June 30, 2020
Balance at beginning of period	$	3	$	3




Purchases, issuances, sales and settlements:

Issuances	18		18

Settlements	(3)		(3)


Balance at end of period	$	18	$	18
Year Ended December 31, 2019
Balance at beginning of period	$	1	$	1




Purchases, issuances, sales and settlements:

Issuances	3		3

Settlements	(1)		(1)


Balance at end of period	$	3	$	3

Additional Information about Assets Measured at Fair Value on Non-Recurring Basis

For assets measured at fair value on a non-recurring basis still held at the Balance Sheet date, the following table provides the hierarchy level and the fair value of the related assets or portfolios:

TABLE 19.3


(in millions)	Level 1		Level 2		Level 3		Total
June 30, 2020
Collateral dependent loans	$	—	$	—	$	31	$	31
Other real estate owned	—		—		9		9
Other assets - SBA servicing asset	—		—		3		3
Other assets - MSRs	—		—		34		34
December 31, 2019
Impaired loans	$	—	$	—	$	5	$	5
Other real estate owned	—		—		4		4
Other assets - SBA servicing asset	—		—		3		3
Other assets - MSRs	—		—		30		30

Fair Values of Financial Instruments

The fair values of our financial instruments are as follows:

TABLE 19.4


					Fair Value Measurements
(in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
June 30, 2020
Financial Assets
Cash and cash equivalents	$	931	$	931	$	931	$	—	$	—
Debt securities available for sale	3,301		3,301		300		3,001		—
Debt securities held to maturity	3,050		3,162		—		3,162		—
Net loans and leases, including loans held for sale	25,905		25,627		—		95		25,532
Loan servicing rights	37		37		—		—		37

Derivative assets	439		439		—		421		18
Accrued interest receivable	94		94		94		—		—
Financial Liabilities
Deposits	28,395		28,450		24,129		4,321		—
Short-term borrowings	2,411		2,416		2,416		—		—
Long-term borrowings	1,630		1,616		—		—		1,616
Derivative liabilities	47		47		—		47		—
Accrued interest payable	19		19		19		—		—
December 31, 2019
Financial Assets
Cash and cash equivalents	$	599	$	599	$	599	$	—	$	—
Debt securities available for sale	3,289		3,289		—		3,289		—
Debt securities held to maturity	3,275		3,305		—		3,305		—
Net loans and leases, including loans held for sale	23,144		22,930		—		41		22,889
Loan servicing rights	46		48		—		—		48

Derivative assets	154		154		—		151		3
Accrued interest receivable	109		109		109		—		—
Financial Liabilities
Deposits	24,786		24,797		20,058		4,739		—
Short-term borrowings	3,216		3,219		3,219		—		—
Long-term borrowings	1,340		1,355		—		—		1,355
Derivative liabilities	25		25		—		25		—
Accrued interest payable	21		21		21		—		—