Fair Value Disclosures (Tables)

3 Months Ended

Mar. 31, 2019

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:



March 31, 2019 (Dollars in millions)	Total		Level 1		Level 2		Level 3
Assets:
AFS securities:
U.S. Treasury	$	1,878	$	—	$	1,878	$	—
GSE	233		—		233		—
Agency MBS	23,047		—		23,047		—
States and political subdivisions	626		—		626		—
Non-agency MBS	497		—		111		386
Other	34		—		34		—
Total AFS securities	26,315		—		25,929		386
LHFS	834		—		834		—
MSRs	1,036		—		—		1,036
Other assets:
Trading and equity securities	1,898		371		1,516		11
Derivative assets	338		1		327		10
Private equity investments	388		—		—		388
Total assets	$	30,809	$	372	$	28,606	$	1,831
Liabilities:
Derivative liabilities	$	180	$	—	$	177	$	3
Securities sold short	250		—		250		—
Total liabilities	$	430	$	—	$	427	$	3

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	$	—

Rollforward of Level 3 Assets and Liabilities

Activity for Level 3 assets and liabilities is summarized below:



Three Months Ended (Dollars in millions)	Trading and Equity Securities			Non-agency MBS			MSRs			Net Derivatives			Private Equity Investments
Balance at January 1, 2018	$	—		$	432		$	1,056		$	3		$	404
Total realized and unrealized gains (losses):
Included in earnings	—			(1		)	68			—			6
Included in unrealized net holding gains (losses) in OCI	—			23			—			—			—
Purchases	—			—			—			—			24
Issuances	—			—			37			(5		)	—
Sales	—			—			—			—			(24		)
Settlements	—			(13		)	(42		)	9			(10		)
Balance at March 31, 2018	$	—		$	441		$	1,119		$	7		$	400
Balance at January 1, 2019	$	3		$	391		$	1,108		$	12		$	393
Total realized and unrealized gains (losses):
Included in earnings	—			2			(54		)	8			23
Included in unrealized net holding gains (losses) in OCI	—			1			—			—			—
Purchases	15			—			—			—			7
Issuances	—			—			22			17			—
Sales	(7		)	—			—			—			(33		)
Settlements	—			(8		)	(40		)	(30		)	(2		)
Balance at March 31, 2019	$	11		$	386		$	1,036		$	7		$	388
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at March 31, 2019	$	—		$	2		$	(54	)	$	7		$	4
Primary income statement location of realized gains (losses) included in earnings	Interest income			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:



	March 31, 2019						December 31, 2018
(Dollars in millions)	Fair Value		UPB		Difference		Fair Value		UPB		Difference
LHFS at fair value	$	834	$	824	$	10	$	988	$	975	$	13

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).



	2019					2018
As of / For The Three Months Ended March 31, (Dollars in millions)	Carrying Value		Valuation Adjustments			Carrying Value		Valuation Adjustments
Impaired loans	$	154	$	(18	)	$	185	$	(12	)
Foreclosed real estate	33		(63		)	40		(66		)

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:



		March 31, 2019				December 31, 2018
(Dollars in millions)	Fair Value Hierarchy	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
HTM securities	Level 2	$	20,095	$	19,886	$	20,552	$	20,047
Loans and leases HFI, net of ALLL	Level 3	147,496		146,077		147,455		145,591
Financial liabilities:
Time deposits	Level 2	14,978		15,026		16,577		16,617
Long-term debt	Level 2	24,729		24,977		23,709		23,723

Selected Information Pertaining to Off-Balance Sheet Financial Instruments

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



	March 31, 2019				December 31, 2018
(Dollars in millions)	Notional/Contract Amount		Fair Value		Notional/Contract Amount		Fair Value
Commitments to extend, originate or purchase credit	$	73,918	$	302	$	72,435	$	280
Residential mortgage loans sold with recourse	404		3		419		3
CRE mortgages serviced for others covered by recourse provisions	4,685		6		4,699		6
Letters of credit	2,267		17		2,389		18