Fair Value Disclosures (Tables)

6 Months Ended

Jun. 30, 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:



June 30, 2019 (Dollars in millions)	Total		Level 1		Level 2		Level 3		Netting Adjustments (1)
Assets:
AFS securities:
U.S. Treasury	$	1,112	$	—	$	1,112	$	—	$	—
GSE	247		—		247		—		—
Agency MBS	23,441		—		23,441		—		—
States and political subdivisions	587		—		587		—		—
Non-agency MBS	382		—		—		382		—
Other	33		—		33		—		—
Total AFS securities	25,802		—		25,420		382		—
LHFS	1,237		—		1,237		—		—
MSRs	970		—		—		970		—
Other assets:
Trading and equity securities	1,848		413		1,435		—		—
Derivative assets	498		—		638		18		(158		)
Private equity investments	449		—		—		449		—
Total assets	$	30,804	$	413	$	28,730	$	1,819	$	(158	)
Liabilities:
Derivative liabilities	$	35	$	—	$	156	$	11	$	(132	)
Securities sold short	188		—		188		—		—
Total liabilities	$	223	$	—	$	344	$	11	$	(132	)

December 31, 2018 (Dollars in millions)	Total		Level 1		Level 2		Level 3		Netting Adjustments (1)
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 April 1, 2018	$	—		$	441		$	1,119		$	7		$	400
Total realized and unrealized gains (losses):
Included in earnings	—			7			23			1			5
Included in unrealized net holding gains (losses) in OCI	—			(9		)	—			—			—
Purchases	1			—			—			—			3
Issuances	—			—			46			11			—
Sales	(1		)	—			—			—			—
Settlements	—			(14		)	(45		)	(15		)	(9		)
Balance at June 30, 2018	$	—		$	425		$	1,143		$	4		$	399
Balance at April 1, 2019	$	11		$	386		$	1,036		$	7		$	388
Total realized and unrealized gains (losses):
Included in earnings	—			(7		)	(51		)	13			1
Included in unrealized net holding gains (losses) in OCI	—			11			—			—			—
Purchases	—			—			—			—			61
Issuances	—			—			30			17			—
Sales	(11		)	—			—			—			(1		)
Settlements	—			(8		)	(45		)	(20		)	—
Transfers into Level 3	—			—			—			(10		)	—
Balance at June 30, 2019	$	—		$	382		$	970		$	7		$	449
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at June 30, 2019	$	—		$	(7	)	$	(51	)	$	17		$	—

Six Months Ended June 30, 2019 and 2018 (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	—			6			91			1			11
Included in unrealized net holding gains (losses) in OCI	—			14			—			—			—
Purchases	1			—			—			—			27
Issuances	—			—			83			6			—
Sales	(1		)	—			—			—			(24		)
Settlements	—			(27		)	(87		)	(6		)	(19		)
Balance at June 30, 2018	$	—		$	425		$	1,143		$	4		$	399
Balance at January 1, 2019	$	3		$	391		$	1,108		$	12		$	393
Total realized and unrealized gains (losses):
Included in earnings	—			(5		)	(105		)	21			24
Included in unrealized net holding gains (losses) in OCI	—			12			—			—			—
Purchases	15			—			—			—			68
Issuances	—			—			52			34			—
Sales	(18		)	—			—			—			(34		)
Settlements	—			(16		)	(85		)	(50		)	(2		)
Transfers into Level 3	—			—			—			(10		)	—
Balance at June 30, 2019	$	—		$	382		$	970		$	7		$	449
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at June 30, 2019	$	—		$	(5	)	$	(105	)	$	18		$	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:



	June 30, 2019						December 31, 2018
(Dollars in millions)	Fair Value		UPB		Difference		Fair Value		UPB		Difference
LHFS at fair value	$	1,237	$	1,221	$	16	$	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 Six Months Ended June 30, (Dollars in millions)	Carrying Value		Valuation Adjustments			Carrying Value		Valuation Adjustments
Impaired loans	$	113	$	(20	)	$	174	$	(22	)
Foreclosed real estate	36		(117		)	43		(114		)

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:



		June 30, 2019				December 31, 2018
(Dollars in millions)	Fair Value Hierarchy	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
HTM securities	Level 2	$	19,487	$	19,565	$	20,552	$	20,047
Loans and leases HFI, net of ALLL	Level 3	150,991		150,295		147,455		145,591
Financial liabilities:
Time deposits	Level 2	15,070		15,141		16,577		16,617
Long-term debt	Level 2	22,640		23,005		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:



	June 30, 2019				December 31, 2018
(Dollars in millions)	Notional/Contract Amount		Fair Value		Notional/Contract Amount		Fair Value
Commitments to extend, originate or purchase credit	$	75,677	$	262	$	72,435	$	280
Residential mortgage loans sold with recourse	387		3		419		3
CRE mortgages serviced for others covered by recourse provisions	4,691		6		4,699		6
Letters of credit	2,269		16		2,389		18