Fair Value Disclosures (Tables)

12 Months Ended

Dec. 31, 2018

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:



December 31, 2018 (Dollars in millions)	Total		Level 1		Level 2		Level 3
Assets:
AFS securities:
U.S. Treasury	$	3,441	$	—	$	3,441	$	—
GSE	200		—		200		—
Agency MBS	20,155		—		20,155		—
States and political subdivisions	701		—		701		—
Non-agency MBS	505		—		114		391
Other	36		—		36		—
Total AFS securities	25,038		—		24,647		391
LHFS	988		—		988		—
MSRs	1,108		—		—		1,108
Other assets:
Trading and equity securities	767		374		390		3
Derivative assets	246		—		234		12
Private equity investments	393		—		—		393
Total assets	$	28,540	$	374	$	26,259	$	1,907
Liabilities:
Derivative liabilities	$	247	$	1	$	246	$	—
Securities sold short	145		—		145		—
Total liabilities	$	392	$	1	$	391	$	—

December 31, 2017 (Dollars in millions)	Total		Level 1		Level 2		Level 3
Assets:
AFS securities:
U.S. Treasury	$	2,291	$	—	$	2,291	$	—
GSE	179		—		179		—
Agency MBS	20,101		—		20,101		—
States and political subdivisions	1,392		—		1,392		—
Non-agency MBS	576		—		144		432
Other	8		6		2		—
Total AFS securities	24,547		6		24,109		432
LHFS	1,099		—		1,099		—
MSRs	1,056		—		—		1,056
Other assets:
Trading and equity securities	633		363		270		—
Derivative assets	443		—		437		6
Private equity investments	404		—		—		404
Total assets	$	28,182	$	369	$	25,915	$	1,898
Liabilities:
Derivative liabilities	$	714	$	—	$	711	$	3
Securities sold short	120		—		120		—
Total liabilities	$	834	$	—	$	831	$	3

Rollforward of Level 3 Assets and Liabilities

Activity for Level 3 assets and liabilities is summarized below:



(Dollars in millions)	Non-agency MBS			MSRs			Net Derivatives			Private Equity Investments
Balance at January 1, 2016	$	626		$	880		$	4		$	289
Total realized and unrealized gains (losses):
Included in earnings	25			63			97			20
Included in unrealized net holding gains (losses) in OCI	(45		)	—			—			—
Purchases	—			—			—			106
Issuances	—			146			82			—
Sales	—			—			—			(4		)
Settlements	(99		)	(160		)	(196		)	(49		)
Adoption of fair value option for commercial MSRs	—			123			—			—
Balance at December 31, 2016	507			1,052			(13		)	362
Total realized and unrealized gains (losses):
Included in earnings	36			48			38			58
Included in unrealized net holding gains (losses) in OCI	(40		)	—			—			—
Purchases	—			—			—			142
Issuances	—			124			43			—
Sales	—			—			—			(119		)
Settlements	(71		)	(168		)	(65		)	(26		)
Transfers out of Level 3	—			—			—			(13		)
Balance at December 31, 2017	432			1,056			3			404
Total realized and unrealized gains (losses):
Included in earnings	9			71			11			66
Purchases	—			—			—			91
Issuances	—			152			24			—
Sales	—			—			—			(112		)
Settlements	(50		)	(171		)	(26		)	(56		)
Balance at December 31, 2018	$	391		$	1,108		$	12		$	393
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at December 31, 2018	$	9		$	71		$	12		$	11
Primary income statement location of realized gains (losses) included in earnings	Interest income			Mortgage banking income			Mortgage banking income			Other income

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:



December 31, (Dollars in millions)	2018						2017
December 31, (Dollars in millions)	Fair Value		UPB		Difference		Fair Value		UPB		Difference
LHFS at fair value	$	988	$	975	$	13	$	1,099	$	1,084	$	15

Assets Measured at Fair Value on a Nonrecurring Basis

The following table provides information about certain 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 (excludes PCI).



	2018					2017
As of / For The Year Ended December 31, (Dollars in millions)	Carrying Value		Valuation Adjustments			Carrying Value		Valuation Adjustments
Impaired loans	$	167	$	(35	)	$	163	$	(22	)
Foreclosed real estate	35		(240		)	32		(255		)

Carrying Amounts and Fair Value of Financial Assets and Liabilities Not Recorded at Fair Value

Financial assets and liabilities not recorded at fair value are summarized below:



December 31, (Dollars in millions)		2018				2017
December 31, (Dollars in millions)	Fair Value Hierarchy	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
HTM securities	Level 2	$	20,552	$	20,047	$	23,027	$	22,837
Loans and leases HFI, net of ALLL	Level 3	147,455		145,591		142,211		141,664
Financial liabilities:
Time deposits	Level 2	16,577		16,617		13,170		13,266
Long-term debt	Level 2	23,709		23,723		23,648		23,885

Selected Information Pertaining to Off-Balance Sheet Financial Instruments

The following is a summary of selected information pertaining to off-balance sheet financial instruments:



	2018				2017
December 31, (Dollars in millions)	Notional/Contract Amount		Fair Value		Notional/Contract Amount		Fair Value
Commitments to extend, originate or purchase credit	$	72,435	$	140	$	67,860	$	259
Residential mortgage loans sold with recourse	419		3		490		5
CRE mortgages serviced for others covered by recourse provisions	4,699		6		4,153		5
Letters of credit	2,389		18		2,466		21