Fair Value Election and Measurement (Tables)

9 Months Ended

Sep. 30, 2018

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 for which fair value has been elected.



	September 30, 2018
	Fair Value Measurements
(Dollars in millions)	Level 1		Level 2		Level 3		Netting Adjustments ¹			Assets/Liabilities at Fair Value
Assets
Trading assets and derivative instruments:
U.S. Treasury securities		$247		$—		$—		$—			$247
Federal agency securities	—		507		—		—			507
U.S. states and political subdivisions	—		91		—		—			91
MBS - agency	—		743		—		—			743
Corporate and other debt securities	—		820		—		—			820
CP	—		408		—		—			408
Equity securities	67		—		—		—			67
Derivative instruments	324		2,942		12		(2,656		)	622
Trading loans	—		2,171		—		—			2,171
Total trading assets and derivative instruments	638		7,682		12		(2,656		)	5,676

Securities AFS:
U.S. Treasury securities	4,133		—		—		—			4,133
Federal agency securities	—		223		—		—			223
U.S. states and political subdivisions	—		602		—		—			602
MBS - agency residential	—		22,505		—		—			22,505
MBS - agency commercial	—		2,602		—		—			2,602
MBS - non-agency commercial	—		905		—		—			905
Corporate and other debt securities	—		14		—		—			14
Total securities AFS ²	4,133		26,851		—		—			30,984

LHFS	—		1,822		—		—			1,822
LHFI	—		—		168		—			168
Residential MSRs	—		—		2,062		—			2,062
Other assets ²	92		—		—		—			92

Liabilities
Trading liabilities and derivative instruments:
U.S. Treasury securities	742		—		—		—			742
Corporate and other debt securities	—		411		—		—			411
Equity securities	12		—		—		—			12
Derivative instruments	132		3,688		9		(3,131		)	698
Total trading liabilities and derivative instruments	886		4,099		9		(3,131		)	1,863

Brokered time deposits	—		384		—		—			384
Long-term debt	—		235		—		—			235

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. See Note 15, "Derivative Financial Instruments," for additional information.

²Beginning January 1, 2018, the Company reclassified equity securities previously presented in Securities available for sale to Other assets on the Consolidated Balance Sheets. Reclassifications have been made to previously reported amounts for comparability. See Note 9, "Other Assets," for additional information.



	December 31, 2017
	Fair Value Measurements
(Dollars in millions)	Level 1		Level 2		Level 3		Netting Adjustments ¹			Assets/Liabilities at Fair Value
Assets
Trading assets and derivative instruments:
U.S. Treasury securities		$157		$—		$—		$—			$157
Federal agency securities	—		395		—		—			395
U.S. states and political subdivisions	—		61		—		—			61
MBS - agency	—		700		—		—			700
Corporate and other debt securities	—		655		—		—			655
CP	—		118		—		—			118
Equity securities	56		—		—		—			56
Derivative instruments	395		3,493		16		(3,102		)	802
Trading loans	—		2,149		—		—			2,149
Total trading assets and derivative instruments	608		7,571		16		(3,102		)	5,093

Securities AFS:
U.S. Treasury securities	4,331		—		—		—			4,331
Federal agency securities	—		259		—		—			259
U.S. states and political subdivisions	—		617		—		—			617
MBS - agency residential	—		22,704		—		—			22,704
MBS - agency commercial	—		2,086		—		—			2,086
MBS - non-agency residential	—		—		59		—			59
MBS - non-agency commercial	—		866		—		—			866
ABS	—		—		8		—			8
Corporate and other debt securities	—		12		5		—			17
Total securities AFS ²	4,331		26,544		72		—			30,947

LHFS	—		1,577		—		—			1,577
LHFI	—		—		196		—			196
Residential MSRs	—		—		1,710		—			1,710
Other assets ²	56		—		—		—			56

Liabilities
Trading liabilities and derivative instruments:
U.S. Treasury securities	577		—		—		—			577
Corporate and other debt securities	—		289		—		—			289
Equity securities	9		—		—		—			9
Derivative instruments	183		4,243		16		(4,034		)	408
Total trading liabilities and derivative instruments	769		4,532		16		(4,034		)	1,283

Brokered time deposits	—		236		—		—			236
Long-term debt	—		530		—		—			530

¹ Amounts 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. See Note 15, "Derivative Financial Instruments," for additional information.

² Beginning January 1, 2018, the Company reclassified equity securities previously presented in Securities available for sale to Other assets on the Consolidated Balance Sheets. Reclassifications have been made to previously reported amounts for comparability. See Note 9, "Other Assets," for additional information.

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



(Dollars in millions)	Fair Value at September 30, 2018		Aggregate UPB at September 30, 2018		Fair Value Over/(Under) Unpaid Principal
Assets:
Trading loans		$2,171		$2,160		$11
LHFS:
Accruing	1,822		1,775		47
LHFI:
Accruing	162		171		(9		)
Nonaccrual	6		8		(2		)
Liabilities:
Brokered time deposits	384		379		5
Long-term debt	235		230		5

(Dollars in millions)	Fair Value at December 31, 2017		Aggregate UPB at December 31, 2017		Fair Value Over/(Under) Unpaid Principal
Assets:
Trading loans		$2,149		$2,111		$38
LHFS:
Accruing	1,576		1,533		43
Past due 90 days or more	1		1		—
LHFI:
Accruing	192		198		(6		)
Nonaccrual	4		6		(2		)
Liabilities:
Brokered time deposits	236		233		3
Long-term debt	530		517		13

Fair Value Gains/(Losses) for Items Measured at Fair Value Option [Table Text Block]



	Fair Value Gain/(Loss) for the Three Months Ended September 30, 2018 for Items Measured at Fair Value Pursuant to Election of the FVO														Fair Value Gain/(Loss) for the Nine Months Ended September 30, 2018 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			Other Noninterest Income			Total Changes in Fair Values Included in Earnings ²			Trading Income		Mortgage Production Related Income ¹			Mortgage Servicing Related Income		Other Noninterest Income			Total Changes in Fair Values Included in Earnings ²
Assets:
Trading loans		$3			$—		$—			$—			$3			$10		$—			$—		$—			$10
LHFS	—			5		—			—			5			—		(3		)	—		—			(3		)
LHFI	—			—		—			(1		)	(1		)	—		—			—		(4		)	(4		)
Residential MSRs	—			3		(11		)	—			(8		)	—		7			15		—			22
Liabilities:
Brokered time deposits	(4		)	—		—			—			(4		)	6		—			—		—			6
Long-term debt	1			—		—			—			1			6		—			—		—			6

¹Income related to LHFS does not include income from IRLCs. For the three and nine months ended September 30, 2018, income related to residential MSRs includes income recognized upon the sale of loans reported at LOCOM.

²Changes in fair value for the three and nine months ended September 30, 2018 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 measured 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 September 30, 2017 for Items Measured at Fair Value Pursuant to Election of the FVO												Fair Value Gain/(Loss) for the Nine Months Ended September 30, 2017 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			Other Noninterest Income		Total Changes in Fair Values Included in Earnings ²			Trading Income		Mortgage Production Related Income ¹		Mortgage Servicing Related Income			Other Noninterest Income		Total Changes in Fair Values Included in Earnings ²
Assets:
Trading loans		$8		$—		$—			$—		$8			$16		$—		$—			$—		$16
LHFS	—		21		—			—		21			—		44		—			—		44
LHFI	—		—		—			—		—			—		—		—			1		1
Residential MSRs	—		1		(70		)	—		(69		)	—		3		(195		)	—		(192		)
Liabilities:
Brokered time deposits	—		—		—			—		—			2		—		—			—		2
Long-term debt	5		—		—			—		5			16		—		—			—		16

¹Income related to LHFS does not include income from IRLCs. For the three and nine months ended September 30, 2017, income related to residential MSRs includes income recognized upon the sale of loans reported at LOCOM.

²Changes in fair value for the three and nine months ended September 30, 2017 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 measured 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]

The valuation technique and range, including weighted average, of the unobservable inputs associated with the Company's level 3 assets and liabilities are as follows:



	Level 3 Significant Unobservable Input Assumptions
(Dollars in millions)	Fair value September 30, 2018		Valuation Technique	Unobservable Input	Range (Weighted Average) ¹
Assets
Trading assets and derivative instruments:
Derivative instruments, net ²		$3	Internal model	Pull through rate	40-100% (82%)
Derivative instruments, net ²		$3	Internal model	MSR value	28-173 bps (116 bps)
LHFI	162		Monte Carlo/Discounted cash flow	Option adjusted spread	62-784 bps (177 bps)
				Conditional prepayment rate	4-27 CPR (12 CPR)
				Conditional default rate	0-2 CDR (0.7 CDR)
	6		Collateral based pricing	Appraised value	NM ³
Residential MSRs	2,062		Monte Carlo/Discounted cash flow	Conditional prepayment rate	5-30 CPR (13 CPR)
Residential MSRs	2,062		Monte Carlo/Discounted cash flow	Option adjusted spread	0-113% (3%)

¹Unobservable inputs were weighted by the relative fair value of the financial instruments.

² Amount represents the net of IRLC assets and liabilities and includes the derivative liability associated with the Company's sale of Visa shares. Refer to the "Trading Liabilities and Derivative Instruments" section herein for a discussion of valuation assumptions related to the Visa derivative liability.

³Not meaningful.



	Level 3 Significant Unobservable Input Assumptions
(Dollars in millions)	Fair value December 31, 2017		Valuation Technique	Unobservable Input ¹	Range (Weighted Average) ²
Assets
Trading assets and derivative instruments:
Derivative instruments, net ³		$—	Internal model	Pull through rate	41-100% (81%)
Derivative instruments, net ³		$—	Internal model	MSR value	41-190 bps (113 bps)
Securities AFS:
MBS - non-agency residential	59		Third party pricing	N/A
ABS	8		Third party pricing	N/A
Corporate and other debt securities	5		Cost	N/A
LHFI	192		Monte Carlo/Discounted cash flow	Option adjusted spread	62-784 bps (215 bps)
				Conditional prepayment rate	2-34 CPR (11 CPR)
				Conditional default rate	0-5 CDR (0.7 CDR)
	4		Collateral based pricing	Appraised value	NM ⁴
Residential MSRs	1,710		Monte Carlo/Discounted cash flow	Conditional prepayment rate	6-30 CPR (13 CPR)
Residential MSRs	1,710		Monte Carlo/Discounted cash flow	Option adjusted spread	1-125% (4%)

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

²Unobservable inputs were weighted by the relative fair value of the financial instruments.

³Amount represents the net of IRLC assets and liabilities and includes the derivative liability associated with the Company's sale of Visa shares. Refer to the "Trading Liabilities and Derivative Instruments" section herein for a discussion of valuation assumptions related to the Visa derivative liability.

⁴Not meaningful.

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



	Fair Value Measurements Using Significant Unobservable Inputs
(Dollars in millions)	Beginning Balance July 1, 2018		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 September 30, 2018
Assets
Trading assets:
Derivative instruments, net		$3		$18	¹		$—		$—		$—		$8			($26	)		$—		$—		$3

LHFI	177		—		²	—		—		—		(9		)	—			—		—		168



	Fair Value Measurements Using Significant Unobservable Inputs
(Dollars in millions)	Beginning Balance January 1, 2018		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 September 30, 2018
Assets
Trading assets:
Derivative instruments, net		$—		$36		¹		$—		$—		$—		$10			($43	)		$—		$—			$3
Securities AFS:
MBS - non-agency residential	59		—				—		—		—		(2		)	—			—		(57		)	—
ABS	8		—				—		—		—		(1		)	—			—		(7		)	—
Corporate and other debt securities	5		—				—		—		—		—			—			—		(5		)	—
Total securities AFS	72		—				—		—		—		(3		)	—			—		(69		)	—

LHFI	196		(3		)	²	—		—		—		(26		)	—			1		—			168

¹ Includes issuances, fair value changes, and expirations. Amount related to residential IRLCs is recognized in Mortgage production related income, amount related to commercial IRLCs is recognized in Commercial real estate related income, and amount related to Visa derivative liability is recognized in Other noninterest expense. Included $10 million and $7 million in earnings during the three and nine months ended September 30, 2018, respectively, related to changes in unrealized gains on net derivative instruments still held at September 30, 2018.

² Amounts are generally included in Mortgage production related income; however, the mark on certain fair value loans is included in Other noninterest income. Included $0 and $4 million in earnings during the three and nine months ended September 30, 2018, respectively, related to changes in unrealized losses on LHFI still held at September 30, 2018.



	Fair Value Measurements Using Significant Unobservable Inputs
(Dollars in millions)	Beginning Balance July 1, 2017		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 September 30, 2017
Assets
Trading assets:
Derivative instruments, net		$4		$52	¹		$—			$—		$—			$1			($51	)		$—		$—		$6
Securities AFS:
U.S. states and political subdivisions	—		—			—			—		—			—			—			—		—		—
MBS - non-agency residential	67		—			1		²	—		—			(6		)	—			—		—		62
ABS	9		—			—			—		—			(1		)	—			—		—		8
Corporate and other debt securities	5		—			—			—		—			—			—			—		—		5
Total securities AFS	81		—			1		²	—		—			(7		)	—			—		—		75

Residential LHFS	2		—			—			—		(2		)	(1		)	(1		)	3		—		1
LHFI	214		—		³	—			—		—			(9		)	1			—		—		206



	Fair Value Measurements Using Significant Unobservable Inputs
(Dollars in millions)	Beginning Balance January 1, 2017		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 September 30, 2017
Assets
Trading assets:
Derivative instruments, net		$6		$157	¹		$—			$—		$—			$—			($157	)		$—		$—			$6
Securities AFS:
U.S. states and political subdivisions	4		—			—			—		—			(4		)	—			—		—			—
MBS - non-agency residential	74		—			1		²	—		—			(13		)	—			—		—			62
ABS	10		—			—			—		—			(2		)	—			—		—			8
Corporate and other debt securities	5		—			—			—		—			—			—			—		—			5
Total securities AFS	93		—			1		²	—		—			(19		)	—			—		—			75

Residential LHFS	12		—			—			—		(22		)	(1		)	(3		)	17		(2		)	1
LHFI	222		1		³	—			—		—			(24		)	3			4		—			206

¹ Includes issuances, fair value changes, and expirations. Amount related to residential IRLCs is recognized in Mortgage production related income, amount related to commercial IRLCs is recognized in Commercial real estate related income, and amount related to Visa derivative liability is recognized in Other noninterest expense. Included $19 million and $17 million in earnings during the three and nine months ended September 30, 2017, respectively, related to changes in unrealized gains on net derivative instruments still held at September 30, 2017.

² Amounts recognized in OCI are included in change in net unrealized gains on securities AFS, net of tax.

³ Amounts are generally included in Mortgage production related income; however, the mark on certain fair value loans is included in Other noninterest income. Included $0 and $1 million in earnings during the three and nine months ended September 30, 2017, respectively, related to changes in unrealized gains on LHFI still held at September 30, 2017.

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



			Fair Value Measurements						(Losses)/Gains for the Three Months Ended September 30, 2018			(Losses)/Gains for the Nine Months Ended September 30, 2018
(Dollars in millions)	September 30, 2018		Level 1		Level 2		Level 3					(Losses)/Gains for the Nine Months Ended September 30, 2018
LHFS		$12		$—		$12		$—		$—			$—
LHFI	17		—		—		17		—			—
OREO	22		—		1		21		(3		)	(4		)
Other assets	63		—		44		19		3			18

			Fair Value Measurements						Losses for the Year Ended December 31, 2017
(Dollars in millions)	December 31, 2017		Level 1		Level 2		Level 3		Losses for the Year Ended December 31, 2017
LHFS		$13		$—		$13		$—		$—
LHFI	49		—		—		49		—
OREO	24		—		1		23		(4		)
Other assets	53		—		4		49		(43		)

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



		September 30, 2018				Fair Value Measurements
(Dollars in millions)	Measurement Category	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	Amortized cost		$7,605		$7,605		$7,605		$—		$—
Trading assets and derivative instruments	Fair value	5,676		5,676		638		5,026		12
Securities AFS	Fair value	30,984		30,984		4,133		26,851		—
LHFS	Amortized cost	139		142		—		110		32
LHFS	Fair value	1,822		1,822		—		1,822		—
LHFI, net	Amortized cost	145,424		144,480		—		—		144,480
LHFI, net	Fair value	168		168		—		—		168
Other ¹	Amortized cost	545		545		—		—		545
Other ¹	Fair value	92		92		92		—		—
Financial liabilities:
Consumer and other time deposits	Amortized cost	15,166		14,889		—		14,889		—
Brokered time deposits	Amortized cost	662		738		—		738		—
Brokered time deposits	Fair value	384		384		—		384		—
Short-term borrowings	Amortized cost	7,940		7,940		—		7,940		—
Long-term debt	Amortized cost	14,054		14,125		—		12,396		1,729
Long-term debt	Fair value	235		235		—		235		—
Trading liabilities and derivative instruments	Fair value	1,863		1,863		886		968		9

¹ Other financial assets recorded at amortized cost consist of FHLB of Atlanta stock and Federal Reserve Bank of Atlanta stock. Other financial assets recorded at fair value consist of mutual fund investments and other equity securities with readily determinable fair values.



		December 31, 2017				Fair Value Measurements
(Dollars in millions)	Measurement Category	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	Amortized cost		$6,912		$6,912		$6,912		$—		$—
Trading assets and derivative instruments	Fair value	5,093		5,093		608		4,469		16
Securities AFS	Fair value	30,947		30,947		4,331		26,544		72
LHFS	Amortized cost	713		716		—		662		54
LHFS	Fair value	1,577		1,577		—		1,577		—
LHFI, net	Amortized cost	141,250		141,379		—		—		141,379
LHFI, net	Fair value	196		196		—		—		196
Other ¹	Amortized cost	418		418		—		—		418
Other ¹	Fair value	56		56		56		—		—
Financial liabilities:
Consumer and other time deposits	Amortized cost	12,076		11,906		—		11,906		—
Brokered time deposits	Amortized cost	749		725		—		725		—
Brokered time deposits	Fair value	236		236		—		236		—
Short-term borrowings	Amortized cost	4,781		4,781		—		4,781		—
Long-term debt	Amortized cost	9,255		9,362		—		8,304		1,058
Long-term debt	Fair value	530		530		—		530		—
Trading liabilities and derivative instruments	Fair value	1,283		1,283		769		498		16

¹Other financial assets recorded at amortized cost consist of FHLB of Atlanta stock and Federal Reserve Bank of Atlanta stock. Other financial assets recorded at fair value consist of mutual fund investments and other equity securities with readily determinable fair values.