Fair Value Disclosures (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value Inputs, Assets, Quantitative Information

The weighted average coupon rates for the available-for-sale mortgage-backed securities at March 31, 2016 are shown in the following table:



	Weighted Average Coupon Rate
Agency mortgage-backed securities	2.86	%
Agency CMOs	2.74	%

The following table presents additional information about significant unobservable inputs used in the valuation of assets measured at fair value on a nonrecurring basis that were categorized in Level 3 of the fair value hierarchy at March 31, 2016 and December 31, 2015:



	Unobservable Inputs	Average		Range
March 31, 2016
Loans receivable:
One- to four-family	Appraised value	$	395,000	$37,000-$2,000,000
Home equity	Appraised value	$	282,700	$8,000-$2,450,000
Real estate owned	Appraised value	$	304,400	$25,500-$1,630,000

December 31, 2015
Loans receivable:
One- to four-family	Appraised value	$	422,900	$8,500-$1,900,000
Home equity	Appraised value	$	274,100	$9,000-$1,300,000
Real estate owned	Appraised value	$	330,700	$26,500-$1,250,000

Fair Value Measurements, Recurring and Nonrecurring

Assets and liabilities measured at fair value at March 31, 2016 and December 31, 2015 are summarized in the following tables (dollars in millions):



	Level 1		Level 2		Level 3		Total Fair Value
March 31, 2016:
Recurring fair value measurements:
Assets
Available-for-sale securities:
Debt securities:
Agency mortgage-backed securities and CMOs	$	—	$	12,759	$	—	$	12,759
Agency debentures	—		804		—		804
U.S. Treasuries	—		293		—		293
Agency debt securities	—		77		—		77
Municipal bonds	—		35		—		35
Corporate bonds	—		4		—		4
Total debt securities	—		13,972		—		13,972
Publicly traded equity securities	33		—		—		33
Total available-for-sale securities	33		13,972		—		14,005
Other assets:
Derivative assets⁽¹⁾	—		8		—		8
Total assets measured at fair value on a recurring basis⁽²⁾	$	33	$	13,980	$	—	$	14,013
Liabilities
Derivative liabilities⁽¹⁾	$	—	$	131	$	—	$	131
Total liabilities measured at fair value on a recurring basis⁽²⁾	$	—	$	131	$	—	$	131
Nonrecurring fair value measurements:
Loans receivable:
One- to four-family	$	—	$	—	$	11	$	11
Home equity	—		—		8		8
Total loans receivable	—		—		19		19
Real estate owned	—		—		17		17
Total assets measured at fair value on a nonrecurring basis⁽³⁾	$	—	$	—	$	36	$	36


(1)	All derivative assets and liabilities were interest rate contracts at March 31, 2016. Information related to derivative instruments is detailed in Note 7—Derivative Instruments and Hedging Activities.


(2)	Assets and liabilities measured at fair value on a recurring basis represented 29% and less than 1% of the Company’s total assets and total liabilities, respectively, at March 31, 2016.


(3)	Represents the fair value of assets prior to deducting estimated selling costs that were carried on the consolidated balance sheet at March 31, 2016, and for which a fair value measurement was recorded during the period.



	Level 1		Level 2		Level 3		Total Fair Value
December 31, 2015:
Recurring fair value measurements:
Assets
Available-for-sale securities:
Debt securities:
Agency mortgage-backed securities and CMOs	$	—	$	11,763	$	—	$	11,763
Agency debentures	—		557		—		557
U.S. Treasuries	—		143		—		143
Agency debt securities	—		55		—		55
Municipal bonds	—		35		—		35
Corporate bonds	—		4		—		4
Total debt securities	—		12,557		—		12,557
Publicly traded equity securities	32		—		—		32
Total available-for-sale securities	32		12,557		—		12,589
Other assets:
Derivative assets⁽¹⁾	—		10		—		10
Total assets measured at fair value on a recurring basis⁽²⁾	$	32	$	12,567	$	—	$	12,599
Liabilities
Derivative liabilities⁽¹⁾	$	—	$	55	$	—	$	55
Total liabilities measured at fair value on a recurring basis⁽²⁾	$	—	$	55	$	—	$	55
Nonrecurring fair value measurements:
Loans receivable:
One- to four-family	$	—	$	—	$	41	$	41
Home equity	—		—		22		22
Total loans receivable	—		—		63		63
Real estate owned	—		—		26		26
Total assets measured at fair value on a nonrecurring basis⁽³⁾	$	—	$	—	$	89	$	89


(1)	All derivative assets and liabilities were interest rate contracts at December 31, 2015. Information related to derivative instruments is detailed in Note 7—Derivative Instruments and Hedging Activities.


(2)	Assets and liabilities measured at fair value on a recurring basis represented 28% and less than 1% of the Company’s total assets and total liabilities, respectively, at December 31, 2015.


(3)	Represents the fair value of assets prior to deducting estimated selling costs that were carried on the consolidated balance sheet at December 31, 2015, and for which a fair value measurement was recorded during the period.

Gains and Losses, Fair Value Measurements, Nonrecurring

The following table presents the gains and losses associated with the assets measured at fair value on a nonrecurring basis during the three months ended March 31, 2016 and 2015 (dollars in millions):



	March 31,
	2016		2015
One- to four-family	$	1	$	2
Home equity	3		4
Total losses on loans receivable measured at fair value	$	4	$	6
Losses (gains) on real estate owned measured at fair value	$	—	$	1

Fair Value, by Balance Sheet Grouping

The following table summarizes the carrying values, fair values and fair value hierarchy level classification of financial instruments that are not carried at fair value on the consolidated balance sheet at March 31, 2016 and December 31, 2015 (dollars in millions):



	March 31, 2016
	Carrying Value		Level 1		Level 2		Level 3		Total Fair Value
Assets
Cash and equivalents	$	1,627	$	1,627	$	—	$	—	$	1,627
Cash required to be segregated under federal or other regulations	$	2,158	$	2,158	$	—	$	—	$	2,158
Held-to-maturity securities:
Agency mortgage-backed securities and CMOs	$	12,016	$	—	$	12,327	$	—	$	12,327
Agency debentures	127		—		128		—		128
Agency debt securities	2,815		—		2,906		—		2,906
Other non-agency debt securities	10		—		—		10		10
Total held-to-maturity securities	$	14,968	$	—	$	15,361	$	10	$	15,371
Margin receivables	$	6,336	$	—	$	6,336	$	—	$	6,336
Loans receivable, net:
One- to four-family	$	2,337	$	—	$	—	$	2,282	$	2,282
Home equity	1,709		—		—		1,583		1,583
Consumer and other	314		—		—		322		322
Total loans receivable, net⁽¹⁾	$	4,360	$	—	$	—	$	4,187	$	4,187
Receivables from brokers, dealers and clearing organizations	$	611	$	—	$	611	$	—	$	611
Liabilities
Deposits	$	31,829	$	—	$	31,829	$	—	$	31,829
Customer payables	$	6,793	$	—	$	6,793	$	—	$	6,793
Payables to brokers, dealers and clearing organizations	$	1,437	$	—	$	1,437	$	—	$	1,437
Trust preferred securities	$	409	$	—	$	—	$	250	$	250
Corporate debt	$	993	$	—	$	1,039	$	—	$	1,039


(1)	The carrying value of loans receivable, net includes the allowance for loan losses of $322 million and loans that are valued at fair value on a nonrecurring basis at March 31, 2016.



	December 31, 2015
	Carrying Value		Level 1		Level 2		Level 3		Total Fair Value
Assets
Cash and equivalents	$	2,233	$	2,233	$	—	$	—	$	2,233
Cash required to be segregated under federal or other regulations	$	1,057	$	1,057	$	—	$	—	$	1,057
Held-to-maturity securities:
Agency mortgage-backed securities and CMOs	$	10,353	$	—	$	10,444	$	—	$	10,444
Agency debentures	127		—		125		—		125
Agency debt securities	2,523		—		2,544		—		2,544
Other non-agency debt securities	10		—		—		10		10
Total held-to-maturity securities	$	13,013	$	—	$	13,113	$	10	$	13,123
Margin receivables	$	7,398	$	—	$	7,398	$	—	$	7,398
Loans receivable, net:
One- to four-family	$	2,465	$	—	$	—	$	2,409	$	2,409
Home equity	1,810		—		—		1,660		1,660
Consumer and other	338		—		—		343		343
Total loans receivable, net⁽¹⁾	$	4,613	$	—	$	—	$	4,412	$	4,412
Receivables from brokers, dealers and clearing organizations	$	520	$	—	$	520	$	—	$	520
Liabilities
Deposits	$	29,445	$	—	$	29,444	$	—	$	29,444
Customer Payables	$	6,544	$	—	$	6,544	$	—	$	6,544
Payables to brokers, dealers and clearing organizations	$	1,576	$	—	$	1,576	$	—	$	1,576
Other borrowings:
Securities sold under agreements to repurchase	$	82	$	—	$	82	$	—	$	82
Trust preferred securities	409		—		—		252		252
Total other borrowings	$	491	$	—	$	82	$	252	$	334
Corporate debt	$	997	$	—	$	1,055	$	—	$	1,055


(1)	The carrying value of loans receivable, net includes the allowance for loan losses of $353 million and loans that are valued at fair value on a nonrecurring basis at December 31, 2015.