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Fair Value Disclosures (Tables)
9 Months Ended
Sep. 30, 2016
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis
The following tables present fair value information for assets and liabilities measured at fair value on a recurring basis:
September 30, 2016
 
Total
 
Level 1
 
Level 2
 
Level 3
 
 
(Dollars in millions)
Assets:
 
 

 
 

 
 

 
 

Trading securities
 
$
992

 
$
318

 
$
674

 
$

AFS securities:
 
 

 
 
 
 
 
 
U.S. Treasury
 
2,650

 

 
2,650

 

GSE
 
176

 

 
176

 

Agency MBS
 
23,535

 

 
23,535

 

States and political subdivisions
 
2,356

 

 
2,356

 

Non-agency MBS
 
722

 

 
183

 
539

Other
 
10

 
10

 

 

LHFS
 
2,664

 

 
2,664

 

MSRs
 
828

 

 

 
828

Derivative assets:
 


 
 
 
 
 
 
Interest rate contracts
 
1,264

 

 
1,242

 
22

Foreign exchange contracts
 
3

 

 
3

 

Private equity and similar investments
 
340

 

 

 
340

Total assets
 
$
35,540

 
$
328

 
$
33,483

 
$
1,729

 
 
 
 
 
 
 
 
 
Liabilities:
 
 

 
 

 
 

 
 

Derivative liabilities:
 
 

 
 

 
 

 
 

Interest rate contracts
 
$
1,184

 
$

 
$
1,182

 
$
2

Foreign exchange contracts
 
3

 

 
3

 

Securities sold short
 
181

 

 
181

 

Total liabilities
 
$
1,368

 
$

 
$
1,366

 
$
2


December 31, 2015
 
Total
 
Level 1
 
Level 2
 
Level 3
 
 
(Dollars in millions)
Assets:
 
 
 
 
 
 
 
 
Trading securities
 
$
1,180

 
$
311

 
$
869

 
$

AFS securities:
 
 

 
 

 
 

 
 

U.S. Treasury
 
1,832

 

 
1,832

 

GSE
 
51

 

 
51

 

Agency MBS
 
20,046

 

 
20,046

 

States and political subdivisions
 
2,375

 

 
2,375

 

Non-agency MBS
 
989

 

 
363

 
626

Other
 
4

 
4

 

 

LHFS
 
1,035

 

 
1,035

 

MSRs
 
880

 

 

 
880

Derivative assets:
 
 
 
 
 
 
 
 
Interest rate contracts
 
964

 

 
956

 
8

Foreign exchange contracts
 
6

 

 
6

 

Private equity and similar investments
 
289

 

 

 
289

Total assets
 
$
29,651

 
$
315

 
$
27,533

 
$
1,803

 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
Derivative liabilities:
 
 
 
 
 
 
 
 
Interest rate contracts
 
$
788

 
$

 
$
784

 
$
4

Foreign exchange contracts
 
4

 

 
4

 

Securities sold short
 
147

 

 
147

 

Total liabilities
 
$
939

 
$

 
$
935

 
$
4

Summary of Activity for Level 3 Assets and Liabilities
Nine Months Ended September 30, 2016
 
Non-agency MBS
 
MSRs
 
Net Derivatives
 
Private Equity and Similar Investments
 
 
(Dollars in millions)
Balance at January 1, 2016
 
$
626

 
$
880

 
$
4

 
$
289

Total realized and unrealized gains (losses):
 
 
 
 
 
 
 
 
Included in earnings:
 
 

 
 

 
 

 
 

Interest income
 
38

 

 

 

Mortgage banking income
 

 
(154
)
 
101

 

Other noninterest income
 

 

 

 
6

Included in unrealized net holding gains (losses) in OCI
 
(50
)
 

 

 

Purchases
 

 

 

 
89

Issuances
 

 
100

 
85

 

Sales
 

 

 

 
(37
)
Settlements
 
(75
)
 
(121
)
 
(170
)
 
(7
)
Other
 

 
123

 

 

Balance at September 30, 2016
 
$
539

 
$
828

 
$
20

 
$
340

 
 
 
 
 
 
 
 
 
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at September 30, 2016
 
$
38

 
$
(154
)
 
$
20

 
$
1


Other represents the adoption of the fair value method for commercial MSRs as of January 1, 2016.
Nine Months Ended September 30, 2015
 
Non-agency MBS
 
MSRs
 
Net Derivatives
 
Private Equity and Similar Investments
 
 
(Dollars in millions)
Balance at January 1, 2015
 
$
745

 
$
844

 
$
17

 
$
329

Total realized and unrealized gains (losses):
 
 
 
 
 
 
 
 
Included in earnings:
 
 

 
 

 
 

 
 

Interest income
 
21

 

 

 

Mortgage banking income
 

 
(21
)
 
68

 

Other noninterest income
 

 

 
(3
)
 
44

Included in unrealized net holding gains (losses) in OCI
 
(36
)
 

 

 

Purchases
 

 

 

 
62

Issuances
 

 
125

 
67

 

Sales
 

 

 

 
(119
)
Settlements
 
(73
)
 
(100
)
 
(132
)
 
(15
)
Balance at September 30, 2015
 
$
657

 
$
848

 
$
17

 
$
301

 
 
 
 
 
 
 
 
 
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at September 30, 2015
 
$
21

 
$
(21
)
 
$
19

 
$
8

The following tables summarize activity for Level 3 assets and liabilities.
Three Months Ended September 30, 2016
 
Non-agency MBS
 
MSRs
 
Net Derivatives
 
Private Equity and Similar Investments
 
 
(Dollars in millions)
Balance at July 1, 2016
 
$
559

 
$
785

 
$
33

 
$
353

Total realized and unrealized gains (losses):
 
 
 
 
 
 
 
 
Included in earnings:
 
 
 
 
 
 
 
 
Interest income
 
6

 

 

 

Mortgage banking income
 

 
42

 
45

 

Other noninterest income
 

 

 

 
3

Included in unrealized net holding gains (losses) in OCI
 
(5
)
 

 

 

Purchases
 

 

 

 
15

Issuances
 

 
44

 
22

 

Sales
 

 

 

 
(29
)
Settlements
 
(21
)
 
(43
)
 
(80
)
 
(2
)
Balance at September 30, 2016
 
$
539

 
$
828

 
$
20

 
$
340

 
 
 
 
 
 
 
 
 
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at September 30, 2016
 
$
6

 
$
42

 
$
20

 
$
1


Three Months Ended September 30, 2015
 
Non-agency MBS
 
MSRs
 
Net Derivatives
 
Private Equity and Similar Investments
 
 
(Dollars in millions)
Balance at July 1, 2015
 
$
688

 
$
912

 
$
(2
)
 
$
359

Total realized and unrealized gains (losses):
 
 
 
 
 
 
 
 
Included in earnings:
 
 

 
 

 
 

 
 

Interest income
 
5

 

 

 

Mortgage banking income
 

 
(90
)
 
20

 

Other noninterest income
 

 

 
(1
)
 
25

Included in unrealized net holding gains (losses) in OCI
 
(11
)
 

 

 

Purchases
 

 

 

 
7

Issuances
 

 
57

 
26

 

Sales
 

 

 

 
(90
)
Settlements
 
(25
)
 
(31
)
 
(26
)
 

Balance at September 30, 2015
 
$
657

 
$
848

 
$
17

 
$
301

 
 
 
 
 
 
 
 
 
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at September 30, 2015
 
$
5

 
$
(90
)
 
$
19

 
$
(7
)
Schedule of Fair Value and UPB of LHFS
The following table details the fair value and UPB of LHFS that were elected to be carried at fair value:
 
 
September 30, 2016
 
December 31, 2015
 
 
Fair
Value
 
Aggregate
UPB
 
Difference
 
Fair
Value
 
Aggregate
UPB
 
Difference
 
 
(Dollars in millions)
LHFS reported at fair value
 
$
2,664

 
2,609

 
55

 
$
1,035

 
$
1,023

 
$
12

Schedule of Assets Measured on a Nonrecurring Basis
The following table provides information about certain financial assets measured at fair value on a nonrecurring basis, which are primarily collateral dependent and may be subject to liquidity adjustments. The carrying values represent end of period values, which approximate the fair value measurements that occurred on the various measurement dates throughout the period. The valuation adjustments represent the amounts recorded during the period regardless of whether the asset is still held at period end. These assets are considered to be Level 3 assets. These amounts exclude assets acquired from the FDIC prior to the loss share termination as well as PCI loans.
 
 
September 30, 2016
 
September 30, 2015
 
 
Carrying Value
 
Valuation Adjustments
 
Carrying Value
 
Valuation Adjustments
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
Three Months Ended
 
Nine Months Ended
 
 
(Dollars in millions)
Impaired loans
 
$
314

 
(22
)
 
$
(76
)
 
$
131

 
(6
)
 
$
(19
)
Foreclosed real estate
 
58

 
(59
)
 
(160
)
 
85

 
(54
)
 
(137
)
Summary of Assets and Liabilities Not Recorded at Fair Value
Financial assets and liabilities not recorded at fair value are summarized below:
September 30, 2016
 
Carrying
Amount
 
Total
Fair Value
 
Level 2
 
Level 3
 
 
(Dollars in millions)
Financial assets:
 
 
 
 
 
 
 
 
HTM securities
 
$
17,750

 
$
18,083

 
$
18,083

 
$

Loans and leases HFI, net of ALLL
 
140,912

 
142,058

 

 
142,058

 
 
 
 
 
 
 
 
 
Financial liabilities:
 
 

 
 

 
 

 
 

Deposits
 
159,915

 
160,090

 
160,090

 

Long-term debt
 
22,776

 
23,376

 
23,376

 

 
December 31, 2015
 
Carrying
Amount
 
Total
Fair Value
 
Level 2
 
Level 3
 
 
(Dollars in millions)
Financial assets:
 
 
 
 
 
 
 
 
HTM securities
 
$
18,530

 
$
18,519

 
$
18,519

 
$

Loans and leases HFI, net of ALLL
 
134,491

 
134,728

 

 
134,728

FDIC loss share receivable
 
285

 
11

 

 
11

 
 
 
 
 
 
 
 
 
Financial liabilities:
 
 
 
 
 
 
 
 
Deposits
 
149,124

 
149,300

 
149,300

 

FDIC loss share payable
 
685

 
676

 

 
676

Long-term debt
 
23,769

 
24,206

 
24,206

 

Summary of Off-Balance Sheet Financial Instruments
The following is a summary of selected information pertaining to off-balance sheet financial instruments:
 
 
September 30, 2016
 
December 31, 2015
 
 
Notional/
Contract
Amount
 
Fair Value
 
Notional/
Contract
Amount
 
Fair Value
 
 
(Dollars in millions)
Commitments to extend, originate or purchase credit
 
$
64,174

 
$
265

 
$
59,019

 
$
253

Residential mortgage loans sold with recourse
 
610

 
8

 
702

 
8

Other loans sold with recourse
 
4,053

 
7

 
4,198

 
7

Letters of credit
 
2,952

 
29

 
3,033

 
27