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Fair Value

9 Months Ended

Sep. 30, 2022

FAIR VALUE

Fair Value Measurement

We measure certain financial assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or the price that would be paid to transfer a liability on the measurement date, and is determined using an exit price in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The fair value hierarchy established by GAAP requires us to maximize the use of observable inputs when measuring fair value. For more information regarding the fair value hierarchy, see Note 15 Fair Value in the Notes To Consolidated Financial Statements included in Item 8 of our 2021 Form 10-K. Additionally, for more information regarding the fair value of assets and liabilities from our BBVA acquisition, see Note 2 Acquisition and Divestiture Activity in the Notes To Consolidated Financial Statements included in Item 8 of our 2021 Form 10-K.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

For more information on the valuation methodologies used to measure assets and liabilities at fair value on a recurring basis, see Note 15 Fair Value in the Notes To Consolidated Financial Statements included in Item 8 of our 2021 Form 10-K. The following table summarizes our assets and liabilities measured at fair value on a recurring basis, including instruments for which we have elected the fair value option.

Table 63: Fair Value Measurements – Recurring Basis Summary


	September 30, 2022								December 31, 2021
In millions	Level 1		Level 2		Level 3		Total Fair Value		Level 1		Level 2		Level 3		Total Fair Value
Assets
Residential mortgage loans held for sale			$	719	$	116	$	835			$	1,221	$	81	$	1,302
Commercial mortgage loans held for sale			200		35		235				526		49		575

Securities available for sale
U.S. Treasury and government agencies	$	9,938	280				10,218		$	41,873	4,291				46,164
Residential mortgage-backed
Agency			28,388				28,388				67,632				67,632
Non-agency					871		871				61		1,097		1,158
Commercial mortgage-backed
Agency			1,755				1,755				1,773				1,773
Non-agency			1,300		3		1,303				3,433		3		3,436
Asset-backed			5		127		132				6,246		163		6,409
Other			3,062		69		3,131				4,895		69		4,964
Total securities available for sale	9,938		34,790		1,070		45,798		41,873		88,331		1,332		131,536
Loans			503		775		1,278				617		884		1,501
Equity investments (a)	1,074				1,795		3,050		1,373				1,680		3,231
Residential mortgage servicing rights					2,074		2,074						1,078		1,078
Commercial mortgage servicing rights					1,132		1,132						740		740
Trading securities (b)	934		1,673				2,607		250		1,601				1,851
Financial derivatives (b) (c)	3		5,857		8		5,868		5		5,109		38		5,152
Other assets	337		101				438		404		114				518
Total assets (d)	$	12,286	$	43,843	$	7,005	$	63,315	$	43,905	$	97,519	$	5,882	$	147,484
Liabilities
Other borrowed funds	$	1,408	$	203	$	2	$	1,613	$	725	$	45	$	3	$	773
Financial derivatives (c) (e)	3		9,614		120		9,737				3,285		285		3,570
Other liabilities					269		269						175		175
Total liabilities (f)	$	1,411	$	9,817	$	391	$	11,619	$	725	$	3,330	$	463	$	4,518

(a)Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.

(b)Included in Other assets on the Consolidated Balance Sheet.

(c)Amounts at September 30, 2022 and December 31, 2021 are presented gross and are not reduced by the impact of legally enforceable master netting agreements that allow us to net positive and negative positions and cash collateral held or placed with the same counterparty. See Note 13 Financial Derivatives for additional information related to derivative offsetting.

(d)Total assets at fair value as a percentage of total consolidated assets was 11% and 26% as of September 30, 2022 and December 31, 2021, respectively. Level 3 assets as a percentage of total assets at fair value was 11% and 4% at September 30, 2022 and December 31, 2021, respectively. Level 3 assets as a percentage of total consolidated assets was 1% at both September 30, 2022 and December 31, 2021.

(e)Included in Other liabilities on the Consolidated Balance Sheet.

(f)Total liabilities at fair value as a percentage of total consolidated liabilities was 2% and 1% at September 30, 2022 and December 31, 2021, respectively. Level 3 liabilities as a percentage of total liabilities at fair value was 3% and 10% at September 30, 2022 and December 31, 2021, respectively. Level 3 liabilities as a percentage of total consolidated liabilities was less than 1% at both September 30, 2022 and December 31, 2021.

Reconciliations of assets and liabilities measured at fair value on a recurring basis using Level 3 inputs for the three and nine months ended September 30, 2022 and 2021 follow:

Table 64: Reconciliation of Level 3 Assets and Liabilities

Three Months Ended September 30, 2022


			Total realized / unrealized gains or losses for the period (a)																				Unrealized gains / losses for the period on assets and liabilities held on Consolidated Balance Sheet at Sept. 30, 2022 (a) (c)
Level 3 Instruments Only In millions	Fair Value June 30, 2022		Included in Earnings		Included in Other comprehensive income (b)			Purchases		Sales		Issuances		Settlements		Transfers into Level 3		Transfers out of Level 3			Fair Value Sept. 30, 2022
Assets
Residential mortgage loans held for sale	$	83	$	(4)				$	46	$	(1)			$	(2)	$	8	$	(14)	(d)	$	116	$	(4)
Commercial mortgage loans held for sale	38													(3)							35

Securities available for sale
Residential mortgage- backed non-agency	925		4			$	(18)							(40)							871
Commercial mortgage- backed non-agency	3																				3
Asset-backed	138					(5)								(6)							127
Other	67					2															69
Total securities available for sale	1,133		4			(21)								(46)							1,070
Loans	804		(1)					11		(2)				(35)				(2)		(d)	775
Equity investments	1,867		167					69		(308)											1,795		65
Residential mortgage servicing rights	1,620		135					363				$	11	(55)							2,074		135
Commercial mortgage servicing rights	988		176					7				17		(56)							1,132		176

Financial derivatives	13		4					1						(10)							8		7

Total assets	$	6,546	$	481		$	(21)	$	497	$	(311)	$	28	$	(207)	$	8	$	(16)		$	7,005	$	379
Liabilities
Other borrowed funds	$	3												$	(1)						$	2
Financial derivatives	213		$	(11)						$	4			(86)							120		$	(7)
Other liabilities	182		26					$	32			$	362	(333)							269		24
Total liabilities	$	398	$	15				$	32	$	4	$	362	$	(420)						$	391	$	17
Net gains (losses)			$	466	(e)																		$	362	(f)

(Continued from previous page)

Three Months Ended September 30, 2021


			Total realized / unrealized gains or losses for the period (a)																						Unrealized gains/losses for the period on assets and liabilities held on Consolidated Balance Sheet at Sept. 30, 2021 (a) (c)
Level 3 Instruments Only In millions	Fair Value June 30, 2021		Included in Earnings		Included in Other comprehensive income (b)			Purchases		Sales		Issuances		Settlements		Transfers into Level 3		Transfers out of Level 3			Impact from BBVA Acquisition		Fair Value Sept. 30, 2021
Assets
Residential mortgage loans held for sale	$	119	$	(1)				$	5	$	(29)			$	(6)	$	4	$	(6)	(d)			$	86	$	(1)
Commercial mortgage loans held for sale	52		(1)																				51
Other consumer loans held for sale	239									(256)											$	17
Securities available for sale
Residential mortgage- backed non-agency	1,237		10			$	(2)							(77)									1,168
Commercial mortgage-backed non-agency	11					(8)																	3
Asset-backed	175		1			5								(9)									172
Other	73							2		(9)				3									69
Total securities available for sale	1,496		11			(5)		2		(9)				(83)									1,412
Loans	979		12					14		(6)				(58)				(5)		(d)			936		12
Equity investments	1,540		265					158		(433)													1,530		95
Residential mortgage servicing rights	1,111		49					28				$	24	(82)									1,130		49
Commercial mortgage servicing rights	682		24					5				22		(30)									703		24

Financial derivatives	87		23					1						(55)									56		39

Total assets	$	6,305	$	382		$	(5)	$	213	$	(733)	$	46	$	(314)	$	4	$	(11)		$	17	$	5,904	$	218
Liabilities
Other borrowed funds	$	2										$	3	$	(1)								$	4
Financial derivatives	200		$	165						$	3			(37)									331		$	171
Other liabilities	124		45									4		(6)									167		44
Total liabilities	$	326	$	210						$	3	$	7	$	(44)								$	502	$	215
Net gains (losses)			$	172	(e)																				$	3	(f)

(Continued from previous page)

Nine Months Ended September 30, 2022


			Total realized / unrealized gains or losses for the period (a)																				Unrealized gains / losses for the period on assets and liabilities held on Consolidated Balance Sheet at Sept. 30, 2022 (a) (c)
Level 3 Instruments Only In millions	Fair Value Dec. 31, 2021		Included in Earnings		Included in Other comprehensive income (b)			Purchases		Sales		Issuances		Settlements		Transfers into Level 3		Transfers out of Level 3			Fair Value Sept. 30, 2022
Assets
Residential mortgage loans held for sale	$	81	$	(6)				$	91	$	(33)			$	(11)	$	22	$	(28)	(d)	$	116	$	(6)
Commercial mortgage loans held for sale	49		(4)											(10)							35		(4)

Securities available for sale
Residential mortgage- backed non-agency	1,097		19			$	(84)							(161)							871
Commercial mortgage- backed non-agency	3																				3
Asset-backed	163		1			(18)								(19)							127
Other	69							3						(3)							69
Total securities available for sale	1,332		20			(102)		3						(183)							1,070
Loans	884		20					31		(10)				(132)				(18)		(d)	775		20
Equity investments	1,680		312					185		(382)											1,795		211
Residential mortgage servicing rights	1,078		505					620				$	49	(178)							2,074		506
Commercial mortgage servicing rights	740		438					32				52		(130)							1,132		438

Financial derivatives	38		(2)					4						(32)							8		18

Total assets	$	5,882	$	1,283		$	(102)	$	966	$	(425)	$	101	$	(676)	$	22	$	(46)		$	7,005	$	1,183
Liabilities
Other borrowed funds	$	3										$	4	$	(5)						$	2
Financial derivatives	285		$	12						$	10			(187)							120		$	22
Other liabilities	175		47					$	32			604		(589)							269		39
Total liabilities	$	463	$	59				$	32	$	10	$	608	$	(781)						$	391	$	61
Net gains (losses)			$	1,224	(e)																		$	1,122	(f)

(Continued from previous page)

Nine Months Ended September 30, 2021


			Total realized / unrealized gains or losses for the period (a)																						Unrealized gains / losses for the period on assets and liabilities held on Consolidated Balance Sheet at Sept. 30, 2021 (a) (c)
Level 3 Instruments Only In millions	Fair Value Dec. 31, 2020		Included in Earnings		Included in Other comprehensive income (b)			Purchases		Sales		Issuances		Settlements		Transfers into Level 3		Transfers out of Level 3			Impact from BBVA Acquisition		Fair Value Sept. 30, 2021
Assets
Residential mortgage loans held for sale	$	163	$	(1)				$	43	$	(81)			$	(34)	$	12	$	(16)	(d)			$	86	$	(1)
Commercial mortgage loans held for sale	57		(1)							(6)				1									51		1
Other consumer loans held for sale										(256)											$	256
Securities available for sale
Residential mortgage- backed non-agency	1,365		30			$	14							(241)									1,168
Commercial mortgage- backed non-agency	11					(8)																	3
Asset-backed	199		2			10								(39)									172
Other	72					1		5		(9)													69
Total securities available for sale	1,647		32			17		5		(9)				(280)									1,412
Loans	647		32					111		(12)				(121)				(13)		(d)	292		936		32
Equity investments	1,263		489					290		(512)													1,530		294
Residential mortgage servicing rights	673		203					400				$	61	(242)							35		1,130		203
Commercial mortgage servicing rights	569		134					26				61		(87)									703		134

Financial derivatives	118		69					4						(140)							5		56		87

Total assets	$	5,137	$	957		$	17	$	879	$	(876)	$	122	$	(903)	$	12	$	(29)		$	588	$	5,904	$	750
Liabilities
Other borrowed funds	$	2										$	4	$	(2)								$	4
Financial derivatives	273		$	155						$	6			(110)							$	7	331		$	156
Other liabilities	43		108									321		(305)									167		81
Total liabilities	$	318	$	263						$	6	$	325	$	(417)						$	7	$	502	$	237
Net gains (losses)			$	694	(e)																				$	513	(f)

(a)Losses for assets are bracketed while losses for liabilities are not.

(b)The difference in unrealized gains and losses for the period included in Other comprehensive income and changes in unrealized gains and losses for the period included in Other comprehensive income for securities available for sale held at the end of the reporting period were insignificant.

(c)The amount of the total gains or losses for the period included in earnings that is attributable to the change in unrealized gains or losses related to those assets and liabilities held at the end of the reporting period.

(d)Residential mortgage loan transfers out of Level 3 are primarily driven by residential mortgage loans transferring to OREO as well as reclassification of mortgage loans held for sale to held for investment.

(e)Net gains (losses) realized and unrealized included in earnings related to Level 3 assets and liabilities included amortization and accretion. The amortization and accretion amounts were included in Interest income on the Consolidated Income Statement and the remaining net gains (losses) realized and unrealized were included in Noninterest income on the Consolidated Income Statement.

(f)Net unrealized gains (losses) related to assets and liabilities held at the end of the reporting period were included in Noninterest income on the Consolidated Income Statement.

An instrument’s categorization within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. Changes from one quarter to the next related to the observability of inputs to a fair value measurement may result in a reclassification (transfer) of assets or liabilities between hierarchy levels.

Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities follows:

Table 65: Fair Value Measurements – Recurring Quantitative Information

September 30, 2022

Level 3 Instruments Only
Dollars in millions

Fair Value

Valuation Techniques

Unobservable Inputs

Range (Weighted-Average) (a)

Commercial mortgage loans held for sale

Discounted cash flow

Spread over the benchmark curve (b)

580bps - 3,665bps (1,004bps)

Residential mortgage-backed
non-agency securities

871

Priced by a third-party vendor using a discounted cash flow pricing model

Constant prepayment rate

1.0% - 27.9% (10.1%)

Constant default rate

0.0% - 13.0% (4.1%)

Loss severity

15.0% - 80.0% (46.1%)

Spread over the benchmark curve (b)

233bps weighted-average

Asset-backed securities

127

Priced by a third-party vendor using a discounted cash flow pricing model

Constant prepayment rate

1.0% - 40.0% (9.0%)

Constant default rate

0.0% - 7.3% (2.2%)

Loss severity

15.0% - 100.0% (48.5%)

Spread over the benchmark curve (b)

314bps weighted-average

Loans - Residential real estate

576

Consensus pricing (c)

Cumulative default rate

3.6% - 100.0% (68.2%)

Loss severity

0.0% - 100.0% (6.0%)

Discount rate

5.5% - 7.5% (5.9%)

Loans - Residential real estate

Discounted cash flow

Loss severity

6.0% weighted-average

Discount rate

7.2% weighted-average

Loans - Home equity

Consensus pricing (c)

Cumulative default rate

3.6% -100.0% (74.3%)

Loss severity

0.0% - 100.0% (18.2%)

Discount rate

5.5% - 7.5% (6.6%)

Loans - Home equity

104

Consensus pricing (c)

Credit and liquidity discount

0.4% - 100.0% (45.7%)

Equity investments

1,795

Multiple of adjusted earnings

Multiple of earnings

5.0x - 86.6x (9.8x)

Residential mortgage servicing rights

2,074

Discounted cash flow

Constant prepayment rate

0.0% - 35.6% (6.8%)

Spread over the benchmark curve (b)

254bps - 1,656bps (759bps)

Commercial mortgage servicing rights

1,132

Discounted cash flow

Constant prepayment rate

3.9% - 10.0% (4.2%)

Discount rate

7.7% - 10.1% (9.7%)

Financial derivatives - Swaps related to
sales of certain Visa Class B
common shares

(100)

Discounted cash flow

Estimated conversion factor of Visa Class B shares into Class A shares

160.6% weighted-average

Estimated annual growth rate of Visa Class A share price

16.0%

Estimated length of litigation resolution date

Q2 2023

Insignificant Level 3 assets, net of
liabilities (d)

(95)

Total Level 3 assets, net of liabilities (e)

6,614

(Continued from previous page)

December 31, 2021

Level 3 Instruments Only
Dollars in millions

Fair Value

Valuation Techniques

Unobservable Inputs

Range (Weighted-Average) (a)

Commercial mortgage loans held for sale

Discounted cash flow

Spread over the benchmark curve (b)

555bps - 15,990bps (9,996bps)

Residential mortgage-backed
non-agency securities

1,097

Priced by a third-party vendor using a discounted cash flow pricing model

Constant prepayment rate

1.0% - 30.7% (11.3%)

Constant default rate

0.0% - 16.9% (4.6%)

Loss severity

20.0% - 96.4% (47.6%)

Spread over the benchmark curve (b)

163bps weighted-average

Asset-backed securities

163

Priced by a third-party vendor using a discounted cash flow pricing model

Constant prepayment rate

1.0% -40.0% (11.1%)

Constant default rate

1.4% - 20.0% (3.2%)

Loss severity

8.0% - 100.0% (57.4%)

Spread over the benchmark curve (b)

182bps weighted-average

Loans - Residential real estate

622

Consensus pricing (c)

Cumulative default rate

3.6% - 100.0% (74.2%)

Loss severity

0.0% - 100.0% (6.9%)

Discount rate

4.8% - 6.8% (5.2%)

Loans - Residential real estate

109

Discounted cash flow

Loss severity

6.0% weighted-average

Discount rate

3.5% weighted-average

Loans - Home equity

Consensus pricing (c)

Cumulative default rate

3.6% - 100.0% (75.8%)

Loss severity

0.0% - 98.4% (17.7%)

Discount rate

4.8% - 6.8% (6.0%)

Loans - Home equity

125

Consensus pricing (c)

Credit and Liquidity discount

0.5% - 100.0% (47.3%)

Equity investments

1,680

Multiple of adjusted earnings

Multiple of earnings

5.0x - 14.4x (8.8x)

Residential mortgage servicing rights

1,078

Discounted cash flow

Constant prepayment rate

0.0% - 41.0% (12.6%)

Spread over the benchmark curve (b)

249bps - 2,218bps (857bps)

Commercial mortgage servicing rights

740

Discounted cash flow

Constant prepayment rate

5.0% - 15.5% (5.5%)

Discount rate

5.4% - 8.0% (7.8%)

Financial derivatives - Swaps related to
sales of certain Visa Class B
common shares

(277)

Discounted cash flow

Estimated conversion factor of Visa Class B shares into Class A shares

161.8% weighted-average

Estimated annual growth rate of Visa Class A share price

16.0%

Estimated length of litigation
resolution date

Q2 2023

Insignificant Level 3 assets, net of
liabilities (d)

Total Level 3 assets, net of liabilities (e)

5,419

(a)Unobservable inputs were weighted by the relative fair value of the instruments.

(b)The assumed yield spread over the benchmark curve for each instrument is generally intended to incorporate non-interest rate risks, such as credit and liquidity risks.

(c)Consensus pricing refers to fair value estimates that are generally internally developed using information such as dealer quotes or other third-party provided valuations or comparable asset prices.

(d)Represents the aggregate amount of Level 3 assets and liabilities measured at fair value on a recurring basis that are individually and in the aggregate insignificant. The amount includes certain financial derivative assets and liabilities, trading securities, other securities, residential mortgage loans held for sale, other assets, other borrowed funds and other liabilities.

(e)Consisted of total Level 3 assets of $7.0 billion and total Level 3 liabilities of $0.4 billion as of September 30, 2022 and $5.9 billion and $0.5 billion as of December 31, 2021, respectively.

Financial Assets Accounted for at Fair Value on a Nonrecurring Basis

We may be required to measure certain financial assets at fair value on a nonrecurring basis. These adjustments to fair value usually result from the application of lower of amortized cost or fair value accounting or write-downs of individual assets due to impairment and are included in Table 66. For more information regarding the valuation methodologies of our financial assets measured at fair value on a nonrecurring basis, see Note 15 Fair Value in the Notes To Consolidated Financial Statements included in Item 8 of our 2021 Form 10-K.

Assets measured at fair value on a nonrecurring basis follow:

Table 66: Fair Value Measurements – Nonrecurring (a) (b) (c)


	Fair Value				Gains (Losses) Three months ended				Gains (Losses) Nine months ended
In millions	September 30 2022		December 31 2021		September 30 2022		September 30 2021		September 30 2022		September 30 2021
Assets
Nonaccrual loans	$	211	$	348	$	(111)	$	(3)	$	(145)	$	(3)
Equity investments	30
Loans held for sale							(1)				(18)
OREO and foreclosed assets	9		6
Long-lived assets	3		103		(1)		(6)		(5)		(17)
Total assets	$	253	$	457	$	(112)	$	(10)	$	(150)	$	(38)

(a)All Level 3 for the periods presented.

(b)Valuation techniques applied were fair value of property or collateral.

(c)Unobservable inputs used were appraised value/sales price, broker opinions or projected income/required improvement costs. Additional quantitative information was not meaningful for the periods presented.

Financial Instruments Accounted for under Fair Value Option

We elect the fair value option to account for certain financial instruments. For more information on these financial instruments for which the fair value option election has been made, see Note 15 Fair Value in the Notes To Consolidated Financial Statements included in Item 8 of our 2021 Form 10-K.

Fair values and aggregate unpaid principal balances of certain items for which we elected the fair value option follow:

Table 67: Fair Value Option – Fair Value and Principal Balances


	September 30, 2022						December 31, 2021
In millions	Fair Value		Aggregate Unpaid Principal Balance		Difference		Fair Value		Aggregate Unpaid Principal Balance		Difference
Assets
Residential mortgage loans held for sale
Accruing loans less than 90 days past due	$	769	$	794	$	(25)	$	1,249	$	1,219	$	30
Accruing loans 90 days or more past due	8		8				6		6
Nonaccrual loans	58		70		(12)		47		57		(10)
Total	$	835	$	872	$	(37)	$	1,302	$	1,282	$	20
Commercial mortgage loans held for sale (a)
Accruing loans less than 90 days past due	$	218	$	222	$	(4)	$	575	$	580	$	(5)
Nonaccrual loans	17		45		(28)
Total	$	235	$	267	$	(32)	$	575	$	580	$	(5)
Loans
Accruing loans less than 90 days past due	$	472	$	484	$	(12)	$	487	$	498	$	(11)
Accruing loans 90 days or more past due	152		166		(14)		262		278		(16)
Nonaccrual loans	654		893		(239)		752		1,028		(276)
Total	$	1,278	$	1,543	$	(265)	$	1,501	$	1,804	$	(303)
Other assets	$	101	$	114	$	(13)	$	105	$	107	$	(2)
Liabilities
Other borrowed funds	$	20	$	20			$	30	$	30
Other liabilities	$	175			$	175

(a)There were no accruing loans 90 days or more past due within this category at September 30, 2022 or December 31, 2021.

The changes in fair value for items for which we elected the fair value option are as follows:

Table 68: Fair Value Option – Changes in Fair Value (a)


	Gains (Losses)				Gains (Losses)
	Three months ended				Nine months ended
	September 30		September 30		September 30		September 30
In millions	2022		2021		2022		2021
Assets
Residential mortgage loans held for sale	$	(29)	$	47	$	(92)	$	120
Commercial mortgage loans held for sale	$	14	$	31	$	34	$	77
Loans	$	1	$	21	$	37	$	52
Other assets	$	(3)	$	3	$	(21)	$	25
Liabilities
Other liabilities	$	(24)			$	(40)

(a)The impact on earnings of offsetting hedged items or hedging instruments is not reflected in these amounts.

Additional Fair Value Information Related to Financial Instruments Not Recorded at Fair Value

The following table presents the carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of all other financial instruments that are not recorded on our Consolidated Balance Sheet at fair value as of September 30, 2022 and December 31, 2021. For more information regarding the methods and assumptions used to estimate the fair values of financial instruments included in Table 69, see Note 15 Fair Value in the Notes To Consolidated Financial Statements included in Item 8 of our 2021 Form 10-K.

Table 69: Additional Fair Value Information Related to Other Financial Instruments


	Carrying		Fair Value
In millions	Amount		Total		Level 1		Level 2		Level 3
September 30, 2022
Assets
Cash and due from banks	$	6,548	$	6,548	$	6,548
Interest-earning deposits with banks	40,278		40,278				$	40,278
Securities held to maturity	90,660		85,189		30,614		54,431		$	144
Net loans (excludes leases)	303,348		299,519						299,519
Other assets	6,178		6,147				6,144		3
Total assets	$	447,012	$	437,681	$	37,162	$	100,853	$	299,666
Liabilities
Time deposits	$	10,034	$	9,661			$	9,661
Borrowed funds	52,946		52,700				50,981		$	1,719
Unfunded lending related commitments	682		682						682
Other liabilities	551		551				551
Total liabilities	$	64,213	$	63,594			$	61,193	$	2,401
December 31, 2021
Assets
Cash and due from banks	$	8,004	$	8,004	$	8,004
Interest-earning deposits with banks	74,250		74,250				$	74,250
Securities held to maturity	1,429		1,522		890		456		$	176
Net loans (excludes leases)	275,874		280,498						280,498
Other assets	4,205		4,204				4,141		63
Total assets	$	363,762	$	368,478	$	8,894	$	78,847	$	280,737
Liabilities
Time deposits	$	17,366	$	17,180			$	17,180
Borrowed funds	30,011		30,616				28,936		$	1,680
Unfunded lending related commitments	662		662						662
Other liabilities	449		449				449
Total liabilities	$	48,488	$	48,907			$	46,565	$	2,342

The aggregate fair values in Table 69 represent only a portion of the total market value of our assets and liabilities as, in accordance with the guidance related to fair values about financial instruments, we exclude the following:

•financial instruments recorded at fair value on a recurring basis (as they are disclosed in Table 63),

•investments accounted for under the equity method,

•equity securities without a readily determinable fair value that apply for the alternative measurement approach to fair value under ASU 2016-01,

•real and personal property,

•lease financing,

•loan customer relationships,

•deposit customer intangibles,

•mortgage servicing rights (MSRs),

•retail branch networks,

•fee-based businesses, such as asset management and brokerage,

•trademarks and brand names,

•trade receivables and payables due in one year or less,

•deposit liabilities with no defined or contractual maturities under ASU 2016-01, and

•insurance contracts.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details