Fair Value Election and Measurement (Tables)

6 Months Ended

Jun. 30, 2014

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Recurring Fair Value Measurements

The following tables present certain information regarding assets and liabilities measured at fair value on a recurring basis and the changes in fair value for those specific financial instruments in which fair value has been elected.



	June 30, 2014
	Fair Value Measurements
(Dollars in millions)	Level 1		Level 2		Level 3		Netting Adjustments ¹			Assets/Liabilities at Fair Value
Assets
Trading assets and derivatives:
U.S. Treasury securities		$170		$—		$—		$—			$170
Federal agency securities	—		405		—		—			405
U.S. states and political subdivisions	—		32		—		—			32
MBS - agency	—		481		—		—			481
CLO securities	—		5		—		—			5
Corporate and other debt securities	—		727		—		—			727
CP	—		141		—		—			141
Equity securities	58		—		—		—			58
Derivative contracts	744		4,804		29		(4,244		)	1,333
Trading loans	—		1,789		—		—			1,789
Total trading assets and derivatives	972		8,384		29		(4,244		)	5,141
Securities AFS:
U.S. Treasury securities	1,574		—		—		—			1,574
Federal agency securities	—		990		—		—			990
U.S. states and political subdivisions	—		239		12		—			251
MBS - agency	—		20,065		—		—			20,065
MBS - private	—		—		140		—			140
ABS	—		—		22		—			22
Corporate and other debt securities	—		36		5		—			41
Other equity securities ²	153		—		779		—			932
Total securities AFS	1,727		21,330		958		—			24,015
LHFS:
Residential loans	—		1,350		3		—			1,353
Total LHFS	—		1,350		3		—			1,353
LHFI	—		—		292		—			292
MSRs	—		—		1,259		—			1,259
Liabilities
Trading liabilities and derivatives:
U.S. Treasury securities	516		—		—		—			516
Corporate and other debt securities	—		310		—		—			310
Derivative contracts	471		4,746		8		(4,861		)	364
Total trading liabilities and derivatives	987		5,056		8		(4,861		)	1,190
Brokered time deposits	—		240		—		—			240
Long-term debt	—		1,311		—		—			1,311
Other liabilities ³	—		—		27		—			27

¹Amounts represent offsetting cash collateral received from and paid to the same derivative counterparties and the impact of netting derivative assets and derivative liabilities when a legally enforceable master netting agreement or similar agreement exists.

²Includes $376 million of FHLB of Atlanta stock, $402 million of Federal Reserve Bank stock, $153 million in mutual fund investments, and $1 million of other.

³Includes contingent consideration obligations related to acquisitions.



	December 31, 2013
	Fair Value Measurements
(Dollars in millions)	Level 1		Level 2		Level 3		Netting Adjustments ¹			Assets/Liabilities at Fair Value
Assets
Trading assets and derivatives:
U.S. Treasury securities		$219		$—		$—		$—			$219
Federal agency securities	—		426		—		—			426
U.S. states and political subdivisions	—		65		—		—			65
MBS - agency	—		323		—		—			323
CDO/CLO securities	—		3		54		—			57
ABS	—		—		6		—			6
Corporate and other debt securities	—		534		—		—			534
CP	—		29		—		—			29
Equity securities	109		—		—		—			109
Derivative contracts	828		5,285		12		(4,741		)	1,384
Trading loans	—		1,888		—		—			1,888
Total trading assets and derivatives	1,156		8,553		72		(4,741		)	5,040
Securities AFS:
U.S. Treasury securities	1,293		—		—		—			1,293
Federal agency securities	—		984		—		—			984
U.S. states and political subdivisions	—		203		34		—			237
MBS - agency	—		18,911		—		—			18,911
MBS - private	—		—		154		—			154
ABS	—		58		21		—			79
Corporate and other debt securities	—		37		5		—			42
Other equity securities ²	103		—		739		—			842
Total securities AFS	1,396		20,193		953		—			22,542
LHFS:
Residential loans	—		1,114		3		—			1,117
Corporate and other loans	—		261		—		—			261
Total LHFS	—		1,375		3		—			1,378
LHFI	—		—		302		—			302
MSRs	—		—		1,300		—			1,300
Liabilities
Trading liabilities and derivatives:
U.S. Treasury securities	472		—		—		—			472
Corporate and other debt securities	—		179		—		—			179
Equity securities	5		—		—		—			5
Derivative contracts	502		5,167		4		(5,148		)	525
Total trading liabilities and derivatives	979		5,346		4		(5,148		)	1,181
Brokered time deposits	—		764		—		—			764
Long-term debt	—		1,556		—		—			1,556
Other liabilities ³	—		—		29		—			29

²Includes $336 million of FHLB of Atlanta stock, $402 million of Federal Reserve Bank stock, $103 million in mutual fund investments, and $1 million of other.

³Includes contingent consideration obligations related to acquisitions, as well as the derivative associated with the Company's sale of Visa shares during the year ended December 31, 2009.

Fair Value Option Elected, Difference Between the Aggregate Fair Value and the Aggregate Unpaid Principal Balance



(Dollars in millions)	Aggregate Fair Value at June 30, 2014		Aggregate Unpaid Principal Balance under FVO at June 30, 2014		Fair Value Over/(Under) Unpaid Principal
Assets:
Trading loans		$1,789		$1,739		$50
LHFS	1,353		1,296		57
LHFI	285		300		(15		)
Nonaccrual	7		10		(3		)
Liabilities:
Brokered time deposits	240		239		1
Long-term debt	1,311		1,176		135
(Dollars in millions)	Aggregate Fair Value at December 31, 2013		Aggregate Unpaid Principal Balance under FVO at December 31, 2013		Fair Value Over/(Under) Unpaid Principal
Assets:
Trading loans		$1,888		$1,858		$30
LHFS	1,375		1,359		16
Past due 90 days or more	1		2		(1		)
Nonaccrual	2		15		(13		)
LHFI	294		317		(23		)
Nonaccrual	8		12		(4		)
Liabilities:
Brokered time deposits	764		761		3
Long-term debt	1,556		1,432		124

Change in Fair Value of Financial Instruments for which the FVO has been Elected



	Fair Value Gain/(Loss) for the Three Months Ended June 30, 2014, for Items Measured at Fair Value Pursuant to Election of the FVO											Fair Value Gain/(Loss) for the Six Months Ended June 30, 2014, for Items Measured at Fair Value Pursuant to Election of the FVO
(Dollars in millions)	Trading Income		Mortgage Production Related Income¹			Mortgage Servicing Related Income			Total Changes in Fair Values Included in Current Period Earnings ²			Trading Income			Mortgage Production Related Income¹			Mortgage Servicing Related Income			Total Changes in Fair Values Included in Current Period Earnings ²
Assets:
Trading loans		$3		$—			$—			$3			$9			$—			$—			$9
LHFS	—		(28		)	—			(28		)	—			(29		)	—			(29		)
LHFI	—		4			—			4			—			8			—			8
MSRs	—		2			(104		)	(102		)	—			2			(185		)	(183		)
Liabilities:
Brokered time deposits	2		—			—			2			5			—			—			5
Long-term debt	5		—			—			5			(3		)	—			—			(3		)

¹Income related to LHFS does not include income from IRLCs. For the three and six months ended June 30, 2014, income related to MSRs includes mortgage servicing income recognized upon the sale of loans reported at LOCOM.

²Changes in fair value for the three and six months ended June 30, 2014 exclude accrued interest for the period then ended. Interest income or interest expense on trading loans, LHFS, LHFI, brokered time deposits, and long-term debt that have been elected to be carried at fair value are recognized in interest income or interest expense in the Consolidated Statements of Income.



	Fair Value Gain/(Loss) for the Three Months Ended June 30, 2013, for Items Measured at Fair Value Pursuant to Election of the FVO											Fair Value Gain/(Loss) for the Six Months Ended June 30, 2013, for Items Measured at Fair Value Pursuant to Election of the FVO
(Dollars in millions)	Trading Income			Mortgage Production Related Income ¹			Mortgage Servicing Related Income		Total Changes in Fair Values Included in Current Period Earnings ²			Trading Income		Mortgage Production Related Income ¹			Mortgage Servicing Related Income		Total Changes in Fair Values Included in Current Period Earnings ²
Assets:
Trading loans		$2			$—			$—		$2			$6		$—			$—		$6
LHFS	(1		)	(86		)	—		(87		)	1		(107		)	—		(106		)
LHFI	—			(6		)	—		(6		)	—		(9		)	—		(9		)
MSRs	—			1			81		82			—		2			98		100
Liabilities:
Brokered time deposits	2			—			—		2			4		—			—		4
Long-term debt	37			—			—		37			27		—			—		27

¹Income related to LHFS does not include income from IRLCs. For the three and six months ended June 30, 2013, income related to MSRs includes mortgage servicing income recognized upon the sale of loans reported at LOCOM.

²Changes in fair value for the three and six months ended June 30, 2013 exclude accrued interest for the period then ended. Interest income or interest expense on trading loans, LHFS, LHFI, brokered time deposits, and long-term debt that have been elected to be carried at fair value are recognized in interest income or interest expense in the Consolidated Statements of Income.

Fair Value Level 3 Significant Unobservable Input Assumptions [Table Text Block]



	Level 3 Significant Unobservable Input Assumptions
(Dollars in millions)	Fair value June 30, 2014	Valuation Technique	Unobservable Input ¹	Range (weighted average)
Assets
Trading assets and derivatives:
Derivative contracts, net ²	$21	Internal model	Pull through rate	8-100% (71%)
Derivative contracts, net ²	$21	Internal model	MSR value	43-212 bps (106 bps)
Securities AFS:
U.S. states and political subdivisions	12	Cost	N/A
MBS - private	140	Third party pricing	N/A
ABS	22	Third party pricing	N/A
Corporate and other debt securities	5	Cost	N/A
Other equity securities	779	Cost	N/A
Residential LHFS	3	Monte Carlo/Discounted cash flow	Option adjusted spread	145-165 bps (150 bps)
			Conditional prepayment rate	0-30 CPR (16.5 CPR)
			Conditional default rate	0-3 CDR (0.5 CDR)
LHFI	285	Monte Carlo/Discounted cash flow	Option adjusted spread	0-450 bps (290 bps)
			Conditional prepayment rate	2-30 CPR (11.5 CPR)
			Conditional default rate	0-7 CDR (1.75 CDR)
	7	Collateral based pricing	Appraised value	NM ³
MSRs	1,259	Discounted cash flow	Conditional prepayment rate	6-18 CPR (9 CPR)
MSRs	1,259	Discounted cash flow	Discount rate	8-24% (11%)
Liabilities
Other liabilities ⁴	24	Internal model	Loan production volume	0-150% (92%)
Other liabilities ⁴	3	Internal model	Revenue run rate	NM ³

¹For certain assets and liabilities where the Company utilizes third party pricing, the unobservable inputs and their ranges are not reasonably available to the Company, and therefore, have been noted as not applicable, "N/A."

²Represents the net of IRLC assets and liabilities entered into by the Mortgage Banking business to hedge its interest rate risk.

³Not meaningful.

⁴Input assumptions relate to the Company's contingent consideration obligations related to acquisitions. See Note 13, "Guarantees," for additional information.



	Level 3 Significant Unobservable Input Assumptions
(Dollars in millions)	Fair value December 31, 2013		Valuation Technique	Unobservable Input ¹	Range (weighted average)
Assets
Trading assets and derivatives:
CDO/CLO securities		$54	Matrix pricing/Discounted cash flow	Indicative pricing based on overcollateralization ratio	$50-$60 ($54)
CDO/CLO securities		$54	Matrix pricing/Discounted cash flow	Discount margin	4-6% (5%)
ABS	6		Matrix pricing	Indicative pricing	$55 ($55)
Derivative contracts, net ²	8		Internal model	Pull through rate	1-99% (74%)
Derivative contracts, net ²	8		Internal model	MSR value	42-222 bps (111 bps)
Securities AFS:
U.S. states and political subdivisions	34		Matrix pricing	Indicative pricing	$80-$111 ($95)
MBS - private	154		Third party pricing	N/A
ABS	21		Third party pricing	N/A
Corporate and other debt securities	5		Cost	N/A
Other equity securities	739		Cost	N/A
Residential LHFS	3		Monte Carlo/Discounted cash flow	Option adjusted spread	250-675 bps (277 bps)
				Conditional prepayment rate	2-10 CPR (7 CPR)
				Conditional default rate	0-4 CDR (0.5 CDR)
LHFI	292		Monte Carlo/Discounted cash flow	Option adjusted spread	0-675 bps (307 bps)
				Conditional prepayment rate	1-30 CPR (13 CPR)
				Conditional default rate	0-7 CDR (2.5 CDR)
	10		Collateral based pricing	Appraised value	NM ³
MSRs	1,300		Discounted cash flow	Conditional prepayment rate	4-25 CPR (8 CPR)
MSRs	1,300		Discounted cash flow	Discount rate	9-28% (12%)
Liabilities
Other liabilities ⁴	23		Internal model	Loan production volume	0-150% (92%)
Other liabilities ⁴	3		Internal model	Revenue run rate	NM ³

²Represents the net of IRLC assets and liabilities entered into by the Mortgage Banking segment to hedge its interest rate risk.

³Not meaningful.

⁴Input assumptions relate to the Company's contingent consideration obligations related to acquisitions. Excludes $3 million of Other Liabilities. See Note 13, "Guarantees," for additional informatio

Reconciliation of the Beginning and Ending Balances for Fair Valued Assets and Liabilities Measured on a Recurring Basis Using Significant Unobservable Inputs

three and six months ended June 30, 2014 and 2013.




	Fair Value Measurements Using Significant Unobservable Inputs
(Dollars in millions)	Beginning balance April 1, 2014		Included in earnings			OCI				Purchases		Sales			Settlements			Transfers to/from other balance sheet line items			Transfers into Level 3		Transfers out of Level 3			Fair value June 30, 2014		Included in earnings (held at June 30, 2014) ¹
Assets
Trading assets:
Derivative contracts, net		$11		$72	²		$—				$—		$—			($2	)		($60	)		$—		$—			$21		($6	)	²
Securities AFS:
U.S. states and political subdivisions	13		—			(1		)		—		—			—			—			—		—			12		—
MBS - private	149		—			2				—		—			(11		)	—			—		—			140		—
ABS	21		—			1				—		—			—			—			—		—			22		—
Corporate and other debt securities	5		—			—				—		—			—			—			—		—			5		—
Other equity securities	712		—			—				135		—			(68		)	—			—		—			779		—
Total securities AFS	900		—		⁴	2			⁵	135		—			(79		)	—			—		—			958		—

Residential LHFS	2		—			—				—		(2		)	—			(2		)	6		(1		)	3		—
LHFI	299		4		⁶	—				—		—			(12		)	1			—		—			292		2			⁶
Liabilities
Other liabilities	26		1		⁷	—				—		—			—			—			—		—			27		—



	Fair Value Measurements Using Significant Unobservable Inputs
(Dollars in millions)	Beginning balance January 1, 2014		Included in earnings				OCI			Purchases		Sales			Settlements			Transfers to/from other balance sheet line items			Transfers into Level 3		Transfers out of Level 3			Fair value June 30, 2014		Included in earnings (held at June 30, 2014) ¹
Assets
Trading assets and derivatives:
CDO/CLO securities		$54		$11		³		$—			$—		($65	)		$—			$—			$—		$—			$—		$—
ABS	6		1			³	—			—		(7		)	—			—			—		—			—		—
Derivative contracts, net	8		133			²	—			—		—			1			(121		)	—		—			21		(6		)	²
Total trading assets and derivatives	68		145				—			—		(72		)	1			(121		)	—		—			21		(6		)
Securities AFS:
U.S. states and political subdivisions	34		(2		)		—			—		(20		)	—			—			—		—			12		—
MBS - private	154		—				5			—		—			(19		)	—			—		—			140		—
ABS	21		—				1			—		—			—			—			—		—			22		—
Corporate and other debt securities	5		—				—			—		—			—			—			—		—			5		—
Other equity securities	739		—				—			135		—			(95		)	—			—		—			779		—
Total securities AFS	953		(2		)	⁴	6		⁵	135		(20		)	(114		)	—			—		—			958		—

Residential LHFS	3		—				—			—		(4		)	—			(6		)	11		(1		)	3		—
LHFI	302		8			⁶	—			—		—			(23		)	5			—		—			292		5			⁶
Liabilities
Other liabilities	29		1			⁷	—			—		—						(3		)	—		—			27		—

¹ Change in unrealized gains/(losses) included in earnings during the period related to financial assets still held at June 30, 2014.

² Amounts included in earnings are net of issuances, fair value changes, and expirations and are recognized in mortgage production related income.

³ Amounts included in earnings are recognized in trading income.

⁴ Amounts included in earnings are recognized in net securities (losses)/gains.

⁵ Amount recognized in OCI is recognized in change in unrealized gains/(losses) on AFS securities.

⁶ Amounts are generally included in mortgage production related income; however, the mark on certain fair value loans is included in trading income.

⁷ Amounts included in earnings are recognized in other noninterest expense




	Fair Value Measurements Using Significant Unobservable Inputs
(Dollars in millions)	Beginning balance April 1, 2013		Included in earnings				OCI				Purchases		Sales			Settlements			Transfers to/from other balance sheet line items			Transfers into Level 3		Transfers out of Level 3			Fair value June 30, 2013			Included in earnings (held at June 30, 2013) ¹
Assets
Trading assets and derivatives:
CDO/CLO securities		$61		$2		³		$—				$—		$—			$—			$—			$—		$—			$63			$2		³
ABS	5		1			³	—				—		—			—			—			—		—			6			1			³
Derivative contracts, net	99		(76		)	²	—				—		—			1			(74		)	—		—			(50		)	1			²
Corporate and other debt securities	1		—				—				—		—			(1		)	—			—		—			—			—
Total trading assets and derivatives	166		(73		)		—				—		—			—			(74		)	—		—			19			4
Securities AFS:
U.S. states and political subdivisions	47		—				—				—		(6		)	(4		)	—			—		—			37			—
MBS - private	202		—				(6		)		—		—			(15		)	—			—		—			181			—
ABS	23		—				—				—		—			(1		)	—			—		—			22			—
Corporate and other debt securities	5		—				—				—		—			(3		)	—			—		—			2			—
Other equity securities	672		—				—				65		—			—			—			—		—			737			—
Total securities AFS	949		—				(6		)	⁵	65		(6		)	(23		)	—			—		—			979			—
Residential LHFS	6		(1		)	⁶	—				—		(3		)	—			(2		)	10		(2		)	8			(1		)	⁶
LHFI	360		(7		)	⁶	—				—		—			(15		)	1			—		—			339			(7		)	⁶
Liabilities
Other liabilities	31		—				—				—		—			—			(2		)	—		—			29			—



	Fair Value Measurements Using Significant Unobservable Inputs
(Dollars in millions)	Beginning balance January 1, 2013		Included in earnings				OCI				Purchases		Sales			Settlements			Transfers to/from other balance sheet line items			Transfers into Level 3		Transfers out of Level 3			Fair value June 30, 2013			Included in earnings (held at June 30, 2013)¹
Assets
Trading assets and derivatives:
CDO/CLO securities		$52		$11		³		$—				$—		$—			$—			$—			$—		$—			$63			$11		³
ABS	5		1			³	—				—		—			—			—			—		—			6			1			³
Derivative contracts, net	132		26			²	—				—		—			1			(209		)	—		—			(50		)	1			²
Corporate and other debt securities	1		—				—				—		—			(1		)	—			—		—			—			—
Total trading assets and derivatives	190		38				—				—		—			—			(209		)	—		—			19			13
Securities AFS:
U.S. states and political subdivisions	46		—				2				—		(7		)	(4		)	—			—		—			37			—
MBS - private	209		—				(3		)		—		—			(25		)	—			—		—			181			—
ABS	21		(1		)		3				—		—			(1		)	—			—		—			22			(1		)
Corporate and other debt securities	5		—				—				—		—			(3		)	—			—		—			2			—
Other equity securities	633		—				—				110		—			(6		)	—			—		—			737			—
Total securities AFS	914		(1		)	⁴	2			⁵	110		(7		)	(39		)	—			—		—			979			(1		)	⁴
Residential LHFS	8		(1		)	⁶	—				—		(13		)	—			(4		)	21		(3		)	8			(1		)	⁶
LHFI	379		(12		)	⁶	—				—		—			(31		)	3			—		—			339			(11		)	⁶
Liabilities
Other liabilities	31		—				—				—		—			—			(2		)	—		—			29			—

¹ Change in unrealized gains/(losses) included in earnings for the period related to financial assets still held at June 30, 2013.

² Amounts included in earnings are net of issuances, fair value changes, and expirations and are recognized in mortgage production related income.

³ Amounts included in earnings are recognized in trading income.

⁴ Amounts included in earnings are recognized in net securities (losses)/gains.

⁵ Amounts recognized in OCI are recognized in change in unrealized gains/(losses) on AFS securities.

⁶ Amounts are generally included in mortgage production related income; however, the mark on certain fair value loans is included in trading incom

Change in Carrying Value of Assets Measured at Fair Value on a Non-Recurring Basis

Carrying Amounts and Fair Values of the Company's Financial Instruments

The carrying amounts and fair values of the Company’s financial instruments are as follows:



	June 30, 2014				Fair Value Measurement Using
(Dollars in millions)	Carrying Amount		Fair Value		Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents		$6,859		$6,859		$6,859		$—		$—	(a)
Trading assets and derivatives	5,141		5,141		972		4,140		29		(b)
Securities AFS	24,015		24,015		1,727		21,330		958		(b)
LHFS	4,046		4,117		—		3,896		221		(c)
LHFI, net	127,741		123,778		—		575		123,203		(d)
Financial liabilities:
Deposits	133,285		133,286		—		133,286		—		(e)
Short-term borrowings	9,115		9,115		—		9,115		—		(f)
Long-term debt	13,155		13,261		—		12,537		724		(f)
Trading liabilities and derivatives	1,190		1,190		987		195		8		(b)



	December 31, 2013				Fair Value Measurement Using
(Dollars in millions)	Carrying Amount		Fair Value		Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents		$5,263		$5,263		$5,263		$—		$—	(a)
Trading assets and derivatives	5,040		5,040		1,156		3,812		72		(b)
Securities AFS	22,542		22,542		1,396		20,193		953		(b)
LHFS	1,699		1,700		—		1,666		34		(c)
LHFI, net	125,833		121,341		—		2,860		118,481		(d)
Financial liabilities:
Deposits	129,759		129,801		—		129,801		—		(e)
Short-term borrowings	8,739		8,739		—		8,739		—		(f)
Long-term debt	10,700		10,678		—		10,086		592		(f)
Trading liabilities and derivatives	1,181		1,181		979		198		4		(b)

The following methods and assumptions were used by the Company in estimating the fair value of financial instruments:


(a)	Cash and cash equivalents are valued at their carrying amounts reported in the balance sheet, which are reasonable estimates of fair value due to the relatively short period to maturity of the instruments.


(b)	Securities AFS, trading assets and derivatives, and trading liabilities and derivatives that are classified as level 1 are valued based on quoted market prices. For those instruments classified as level 2 or 3, refer to the respective valuation discussions within this footnote.

(c)

LHFS are generally valued based on observable current market prices or, if quoted market prices are not available, on quoted market prices of similar instruments. Refer to the LHFS section within this footnote for further discussion of the LHFS carried at fair value. In instances for which significant valuation assumptions are not readily observable in the market, instruments are valued based on the best available data to approximate fair value. This data may be internally-developed and considers risk premiums that a market participant would require under then-current market conditions.

(d)

LHFI fair values are based on a hypothetical exit price, which does not represent the estimated intrinsic value of the loan if held for investment. The assumptions used are expected to approximate those that a market participant purchasing the loans would use to value the loans, including a market risk premium and liquidity discount. Estimating the fair value of the loan portfolio when loan sales and trading markets are illiquid, or for certain loan types, nonexistent, requires significant judgment. Therefore, the estimated fair value can vary significantly depending on a market participant’s ultimate considerations and assumptions. The final value yields a market participant’s expected return on investment that is indicative of the current market conditions, but it does not take into consideration the Company’s estimated value from continuing to hold these loans or its lack of willingness to transact at these estimated values.

The Company generally estimated fair value for LHFI based on estimated future cash flows discounted, initially, at current origination rates for loans with similar terms and credit quality, which derived an estimated value of 100% and 99% on the loan portfolio’s net carrying value at June 30, 2014 and December 31, 2013, respectively. The value derived from origination rates likely does not represent an exit price; therefore, an incremental market risk and liquidity discount was subtracted from the initial value at June 30, 2014 and December 31, 2013. The discounted value is a function of a market participant’s required yield in the current environment and is not a reflection of the expected cumulative losses on the loans. Loan prepayments are used to adjust future cash flows based on historical experience and prepayment model forecasts. The value of related accrued interest on loans approximates fair value; however, it is not included in the carrying amount or fair value of loans. The value of long-term customer relationships is not permitted under current U.S. GAAP to be included in the estimated fair value.

(e)

Deposit liabilities with no defined maturity such as DDAs, NOW/money market accounts, and savings accounts have a fair value equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for CDs are estimated using a discounted cash flow measurement that applies current interest rates to a schedule of aggregated expected maturities. The assumptions used in the discounted cash flow analysis are expected to approximate those that market participants would use in valuing deposits. The value of long-term relationships with depositors is not taken into account in estimating fair values. For valuation of brokered time deposits that the Company carries at fair value as well as those that are carried at amortized cost, refer to the respective valuation section within this footnote.

(f)

Fair values for short-term borrowings and certain long-term debt are based on quoted market prices for similar instruments or estimated using discounted cash flow analysis and the Company’s current incremental borrowing rates for similar types of instruments. For long-term debt that the Company carries at fair value, refer to the respective valuation section within this footnote. For level 3 debt, the terms are unique in nature or there are otherwise no similar instruments that can be used to value the instrument without using significant unobservable assumptions. In this situation, the Company reviews current borrowing rates along with the collateral levels that secure the debt in determining an appropriate fair value adjustme

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References+ Details

- Definition

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) the reasons for electing a fair value option for each eligible item or group of similar eligible items and (b) if the fair value option is elected for some but not all eligible items within a group of similar eligible items: (i) a description of those similar items and the reasons for partial election and (ii) information of how the group of similar items relates to individual balance sheet line items; (c) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, information of how each line item in the statement of financial position relates to major categories of assets and liabilities presented in accordance with other fair value disclosures; (2) for items included in the income statement: (a) a description of how interest and dividends are measured and where they are reported in the income statement; (b) how the gains or losses attributable to changes in instrument-specific credit risk were determined; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk: (i) qualitative information about the reasons for the changes and (ii) how the gains and losses attributable to changes in instrument-specific credit risk were determined; and (3) certain other disclosures as required or determined to be provided.

+ References+ Details

- Definition

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, provide the aggregate carrying amount of ineligible items included in each line item in the balance sheet, if any; (b) the difference between the aggregate fair value and the aggregate unpaid principal balance (assuming contractual principal amounts and fair value option elected) of: (i) loans and long-term receivables (other than securities otherwise reported at fair value) and (ii) long-term debt instruments; (c) for loans held as assets for which the fair value option has been elected: (i) the aggregate fair value of loans that are 90 days or more past due, (ii) if the policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status, and (iii) the difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both; (2) for items included in the income statement: (a) the amounts of gains and losses from fair value changes included in earnings and in which line in the income statement those gains and losses are reported whether or not combined with gains and losses from items required to be accounted for at fair value; (b) for loans and other receivables held as assets, the estimated amount of gains or losses included in earnings attributable to changes in instrument-specific credit risk; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk, the estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk; and (3) certain other disclosures as required or determined to be provided.

+ References+ Details