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Fair Value Disclosures (Tables)
12 Months Ended
Dec. 31, 2017
Fair Value Disclosures [Abstract]  
Fair Value Inputs, Assets, Quantitative Information
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 December 31, 2017 and 2016:
 
Unobservable Inputs
 
Average
 
Range
December 31, 2017
 
 
 
 
 
Loans receivable:
 
 
 
 
 
One- to four-family
Appraised value
 
$
520,700

 
$60,000 - $1,200,000
Home equity
Appraised value
 
$
317,300

 
$38,000 - $2,066,000
Real estate owned
Appraised value
 
$
355,200

 
$4,500 - $2,000,000
 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
Loans receivable:
 
 
 
 
 
One- to four-family
Appraised value
 
$
408,100

 
$50,000 - $1,490,000
Home equity
Appraised value
 
$
312,000

 
$6,000 - $2,500,000
Real estate owned
Appraised value
 
$
342,300

 
$21,500 - $1,800,000
Fair Value Measurements, Recurring and Nonrecurring
Assets and liabilities measured at fair value at December 31, 2017 and 2016 are summarized in the following tables (dollars in millions):
 
Level 1
 
Level 2
 
Level 3
 
Total
Fair Value
December 31, 2017:
 
 
 
 
 
 
 
Recurring fair value measurements:
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
Agency mortgage-backed securities
$

 
$
19,195

 
$

 
$
19,195

Agency debentures

 
966

 

 
966

US Treasuries

 
458

 

 
458

Agency debt securities

 
33

 

 
33

Municipal bonds

 
20

 

 
20

Total debt securities

 
20,672

 

 
20,672

Publicly traded equity securities
7

 

 

 
7

Total available-for-sale securities
7

 
20,672

 

 
20,679

Receivables from brokers, dealers and clearing organizations:
 
 
 
 
 
 
 
US Treasuries
300

 

 

 
300

Other assets:
 
 
 
 
 
 
 
Derivative assets(1)

 
131

 

 
131

Total assets measured at fair value on a recurring basis(2)
$
307

 
$
20,803

 
$

 
$
21,110

Liabilities
 
 
 
 
 
 
 
Other liabilities:
 
 
 
 
 
 
 
Derivative liabilities(1)
$

 
$
14

 
$

 
$
14

Total liabilities measured at fair value on a recurring basis(2)
$

 
$
14

 
$

 
$
14

Nonrecurring fair value measurements:
 
 
 
 
 
 
 
Loans receivable, net:
 
 
 
 
 
 
 
One- to four-family
$

 
$

 
$
22

 
$
22

Home equity

 

 
13

 
13

Total loans receivable

 

 
35

 
35

Other assets:
 
 
 
 
 
 
 
Loans held-for-sale

 
17

 

 
17

Real estate owned

 

 
26

 
26

Total assets measured at fair value on a nonrecurring basis(3)
$

 
$
17

 
$
61

 
$
78

 
(1)
All derivative assets and liabilities were interest rate contracts at December 31, 2017. Information related to derivative instruments is detailed in Note 8—Derivative Instruments and Hedging Activities.
(2)
Assets and liabilities measured at fair value on a recurring basis represented 33% and less than 1% of the Company’s total assets and total liabilities, respectively, at December 31, 2017.
(3)
Represents the fair value of assets prior to deducting estimated selling costs that were carried on the consolidated balance sheet at December 31, 2017, and for which a fair value measurement was recorded during the period.
 
Level 1
 
Level 2
 
Level 3
 
Total
Fair Value
December 31, 2016:
 
 
 
 
 
 
 
Recurring fair value measurements:
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
Agency mortgage-backed securities
$

 
$
12,634

 
$

 
$
12,634

Agency debentures

 
788

 

 
788

US Treasuries

 
407

 

 
407

Agency debt securities

 
24

 

 
24

Municipal bonds

 
32

 

 
32

Total debt securities

 
13,885

 

 
13,885

Publicly traded equity securities
7

 

 

 
7

Total available-for-sale securities
7

 
13,885

 

 
13,892

Other assets:
 
 
 
 
 
 
 
Derivative assets(1)

 
165

 

 
165

Total assets measured at fair value on a recurring basis(2)
$
7

 
$
14,050

 
$

 
$
14,057

Liabilities
 
 
 
 
 
 
 
Other liabilities:
 
 
 
 
 
 
 
Derivative liabilities(1)
$

 
$
31

 
$

 
$
31

Total liabilities measured at fair value on a recurring basis(2)
$

 
$
31

 
$

 
$
31

Nonrecurring fair value measurements:
 
 
 
 
 
 
 
Loans receivable, net:
 
 
 
 
 
 
 
One- to four-family
$

 
$

 
$
25

 
$
25

Home equity

 

 
21

 
21

Total loans receivable

 

 
46

 
46

Other assets:
 
 
 
 
 
 
 
Real estate owned

 

 
35

 
35

Total assets measured at fair value on a nonrecurring basis(3)
$

 
$

 
$
81

 
$
81

 
(1)
All derivative assets and liabilities were interest rate contracts at December 31, 2016. Information related to derivative instruments is detailed in Note 8—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 December 31, 2016.
(3)
Represents the fair value of assets prior to deducting estimated selling costs that were carried on the consolidated balance sheet at December 31, 2016, and for which a fair value measurement was recorded during the period.
Gains and Losses, Fair Value Measurements, Nonrecurring
The following table presents losses recognized on assets measured at fair value on a nonrecurring basis during the years ended December 31, 2017 and 2016 (dollars in millions):
 
Year Ended December 31,
 
2017
 
2016
 
2015
One- to four-family
$
4

 
$
4

 
$
7

Home equity
5

 
12

 
14

Total losses on loans receivable measured at fair value
$
9

 
$
16

 
$
21

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 December 31, 2017 and 2016 (dollars in millions):
 
December 31, 2017
 
Carrying
Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Fair Value
Assets
 
 
 
 
 
 
 
 
 
Cash and equivalents
$
931

 
$
931

 
$

 
$

 
$
931

Cash required to be segregated under federal or other regulations
$
872

 
$
872

 
$

 
$

 
$
872

Held-to-maturity securities:
 
 
 
 
 
 
 
 
 
Agency mortgage-backed securities
$
20,502

 
$

 
$
20,404

 
$

 
$
20,404

Agency debentures
710

 

 
708

 

 
708

Agency debt securities
2,615

 

 
2,595

 

 
2,595

Other
12

 

 

 
12

 
12

Total held-to-maturity securities
$
23,839

 
$

 
$
23,707

 
$
12

 
$
23,719

Margin receivables(1)
$
9,071

 
$

 
$
9,071

 
$

 
$
9,071

Loans receivable, net:
 
 
 
 
 
 
 
 
 
One- to four-family
$
1,417

 
$

 
$

 
$
1,463

 
$
1,463

Home equity
1,051

 

 

 
1,055

 
1,055

Consumer and other
186

 

 

 
187

 
187

Total loans receivable, net(2)
$
2,654

 
$

 
$

 
$
2,705

 
$
2,705

Receivables from brokers, dealers and clearing organizations(1)
$
878

 
$

 
$
878

 
$

 
$
878

Other assets(1)(3)
$
18

 
$

 
$
18

 
$

 
$
18

Liabilities
 
 
 
 
 
 
 
 
 
Deposits
$
42,742

 
$

 
$
42,741

 
$

 
$
42,741

Customer payables
$
9,449

 
$

 
$
9,449

 
$

 
$
9,449

Payables to brokers, dealers and clearing organizations
$
1,542

 
$

 
$
1,542

 
$

 
$
1,542

Other borrowings:
 
 
 
 
 
 
 
 
 
FHLB advances
$
500

 
$

 
$
500

 
$

 
$
500

Trust preferred securities
$
410

 
$

 
$

 
$
379

 
$
379

Total other borrowings
$
910


$


$
500


$
379


$
879

Corporate debt
$
991

 
$

 
$
992

 
$

 
$
992

(1)
The fair value of securities that the Company received as collateral in connection with margin receivables and securities borrowing activities, including the fully paid lending program, where the Company is permitted to sell or re-pledge the securities, was approximately $12.8 billion at December 31, 2017. Of this amount, $3.2 billion had been pledged or sold in connection with securities loaned and deposits with clearing organizations at December 31, 2017.
(2)
The carrying value of loans receivable, net includes the allowance for loan losses of $74 million and loans that are recorded at fair value on a nonrecurring basis at December 31, 2017.
(3)
The $18 million in other assets at December 31, 2017 represents securities borrowing from customers under the fully paid lending program.
 
December 31, 2016
 
Carrying
Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Fair Value
Assets
 
 
 
 
 
 
 
 
 
Cash and equivalents
$
1,950

 
$
1,950

 
$

 
$

 
$
1,950

Cash required to be segregated under federal or other regulations
$
1,460

 
$
1,460

 
$

 
$

 
$
1,460

Held-to-maturity securities:
 
 
 
 
 
 
 
 
 
Agency mortgage-backed securities
$
12,868

 
$

 
$
12,839

 
$

 
$
12,839

Agency debentures
29

 

 
29

 

 
29

Agency debt securities
2,854

 

 
2,848

 

 
2,848

Total held-to-maturity securities
$
15,751

 
$

 
$
15,716

 
$

 
$
15,716

Margin receivables(1)
$
6,731

 
$

 
$
6,731

 
$

 
$
6,731

Loans receivable, net:
 
 
 
 
 
 
 
 
 
One- to four-family
$
1,918

 
$

 
$

 
$
1,942

 
$
1,942

Home equity
1,385

 

 

 
1,311

 
1,311

Consumer and other
248

 

 

 
249

 
249

Total loans receivable, net(2)
$
3,551

 
$

 
$

 
$
3,502

 
$
3,502

Receivables from brokers, dealers and clearing organizations
$
1,056

 
$

 
$
1,056

 
$

 
$
1,056

Liabilities
 
 
 
 
 
 
 
 
 
Deposits
$
31,682

 
$

 
$
31,681

 
$

 
$
31,681

Customer Payables
$
8,159

 
$

 
$
8,159

 
$

 
$
8,159

Payables to brokers, dealers and clearing organizations
$
983

 
$

 
$
983

 
$

 
$
983

Trust preferred securities
$
409

 
$

 
$

 
$
288

 
$
288

Corporate debt
$
994

 
$

 
$
1,050

 
$

 
$
1,050

 
(1)
The fair value of securities that the Company received as collateral in connection with margin receivables and securities borrowing activities, where the Company is permitted to sell or re-pledge the securities, was approximately $9.8 billion at December 31, 2016. Of this amount, $2.0 billion had been pledged or sold in connection with securities loaned and deposits with clearing organizations at December 31, 2016.
(2)
The carrying value of loans receivable, net includes the allowance for loan losses of $221 million and loans that are recorded at fair value on a nonrecurring basis at December 31, 2016.