XML 50 R40.htm IDEA: XBRL DOCUMENT v3.24.3
Fair Values of Assets and Liabilities (Tables)
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Valuation Assumption Ranges for MSRs
The following table shows the significant valuation assumption ranges for MSRs at September 30, 2024:
 Minimum Maximum
Weighted-
Average(a)
Expected prepayment7 %23 %10 %
Option adjusted spread4 11 5 
(a)Determined based on the relative fair value of the related mortgage loans serviced.
Valuation Assumption Ranges for Derivative Commitments
The following table shows the significant valuation assumption ranges for the Company’s derivative commitments to purchase and originate mortgage loans at September 30, 2024:
 Minimum Maximum
Weighted-
Average(a)
Expected loan close rate11 %100 %75 %
Inherent MSR value (basis points per loan)52 199 107 
(a)Determined based on the relative fair value of the related mortgage loans.
Assets and Liabilities Measured at Fair Value on Recurring Basis
The following table summarizes the balances of assets and liabilities measured at fair value on a recurring basis:
(Dollars in Millions)Level 1Level 2Level 3Netting Total
September 30, 2024     
Available-for-sale securities     
U.S. Treasury and agencies$24,689 $4,710 $— $— $29,399 
Mortgage-backed securities     
Residential agency— 27,766 — — 27,766 
Commercial     
Agency— 7,605 — — 7,605 
Non-agency— 7 — — 7 
Asset-backed securities— 6,788 — — 6,788 
Obligations of state and political subdivisions— 9,888 — — 9,888 
Other— 251 — — 251 
Total available-for-sale24,689 57,015 — — 81,704 
Mortgage loans held for sale— 2,887 — — 2,887 
Mortgage servicing rights— — 3,187 — 3,187 
Derivative assets30 4,773 1,563 (2,878)3,488 
Other assets440 2,185 — — 2,625 
Total$25,159 $66,860 $4,750 $(2,878)$93,891 
Time deposits$— $7,655 $— $— $7,655 
Long-term debt— 45 — — 45 
Derivative liabilities16 4,213 2,375 (2,847)3,757 
Short-term borrowings and other liabilities(a)
514 1,892 — — 2,406 
Total$530 $13,805 $2,375 $(2,847)$13,863 
December 31, 2023     
Available-for-sale securities     
U.S. Treasury and agencies$14,787 $4,755 $— $— $19,542 
Mortgage-backed securities     
Residential agency— 26,078 — — 26,078 
Commercial     
Agency— 7,343 — — 7,343 
Non-agency— 6 — — 6 
Asset-backed securities— 6,724 — — 6,724 
Obligations of state and political subdivisions— 9,989 — — 9,989 
Other— 24 — — 24 
Total available-for-sale14,787 54,919 — — 69,706 
Mortgage loans held for sale— 2,011 — — 2,011 
Mortgage servicing rights— — 3,377 — 3,377 
Derivative assets— 5,078 1,453 (3,666)2,865 
Other assets550 1,991 — — 2,541 
Total$15,337 $63,999 $4,830 $(3,666)$80,500 
Time deposits$— $2,818 $— $— $2,818 
Derivative liabilities16 4,955 3,338 (3,720)4,589 
Short-term borrowings and other liabilities(a)
517 1,786 — — 2,303 
Total$533 $9,559 $3,338 $(3,720)$9,710 
Note: Excluded from the table above are equity investments without readily determinable fair values. The Company has elected to carry these investments at historical cost, adjusted for impairment and any changes resulting from observable price changes for identical or similar investments of the issuer. The aggregate carrying amount of these equity investments was $133 million at both September 30, 2024 and December 31, 2023, and reflect no impairment or observable price change adjustment at September 30, 2024, compared with a cumulative impairment of $5 million and no observable price change adjustment at December 31, 2023. The Company recorded a $5 million impairment on these equity investments during the first nine months of 2023. The Company did not record any adjustments for observable price changes during the first nine months of 2024 and 2023.
(a)Primarily represents the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance.
Changes in Fair Value for Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)
The following table presents the changes in fair value for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):
Three Months Ended September 30
(Dollars in Millions)		Beginning of Period BalanceNet Gains (Losses) Included in Net IncomePurchasesSalesPrincipal PaymentsIssuancesSettlementsEnd of Period BalanceNet Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period
2024
Mortgage servicing rights$3,326 $(212)
(a)
$— $1 $— $72 
(c)
$— $3,187 $(212)
(a)
Net derivative assets and liabilities(2,303)651 
(b)
264 (9)— — 585 (812)1,438 
(d)
2023
Mortgage servicing rights$3,633 $134 
(a)
$1 $(292)$— $106 
(c)
$— $3,582 $134 
(a)
Net derivative assets and liabilities(3,419)(1,315)
(e)
25 (9)— — 962 (3,756)(693)
(f)
Nine Months Ended September 30
(Dollars in Millions)		Beginning of Period BalanceNet Gains (Losses) Included in Net Income PurchasesSalesPrincipal PaymentsIssuancesSettlementsEnd of Period BalanceNet Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period
2024
Mortgage servicing rights$3,377 $(194)
(a)
$1 $(188)$— $191 
(c)
$— $3,187 $(194)
(a)
Net derivative assets and liabilities(1,885)(2,036)
(g)
912 (14)— — 2,211 (812)666 
(h)
2023
Available-for-sale securities
Obligations of state and political subdivisions$1 $—  $— $— $(1)$— $— $— $— 
Total available-for-sale1 —  — — (1)— — — — 
Mortgage servicing rights3,755 (37)
(a)
3 (440)— 301 
(c)
— 3,582 (37)
(a)
Net derivative assets and liabilities(3,199)(3,558)
(i)
430 (28)— — 2,599 (3,756)(1,925)
(j)
(a)Included in mortgage banking revenue.
(b)Approximately $89 million, $563 million and $(1) million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.
(c)Represents MSRs capitalized during the period.
(d)Approximately $20 million, $1.4 billion and $(1) million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.
(e)Approximately $35 million, $(1.4) billion and $1 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.
(f)Approximately $11 million, $(705) million and $1 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.
(g)Approximately $185 million, $(2.2) billion and $(70) million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.
(h)Approximately $20 million, $716 million and $(70) million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.
(i)Approximately $133 million and $(3.7) billion included in mortgage banking revenue and commercial products revenue, respectively.
(j)Approximately $11 million and $(1.9) billion included in mortgage banking revenue and commercial products revenue, respectively.
Changes in Fair Value for Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)
The following table presents the changes in fair value for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):
Three Months Ended September 30
(Dollars in Millions)		Beginning of Period BalanceNet Gains (Losses) Included in Net IncomePurchasesSalesPrincipal PaymentsIssuancesSettlementsEnd of Period BalanceNet Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period
2024
Mortgage servicing rights$3,326 $(212)
(a)
$— $1 $— $72 
(c)
$— $3,187 $(212)
(a)
Net derivative assets and liabilities(2,303)651 
(b)
264 (9)— — 585 (812)1,438 
(d)
2023
Mortgage servicing rights$3,633 $134 
(a)
$1 $(292)$— $106 
(c)
$— $3,582 $134 
(a)
Net derivative assets and liabilities(3,419)(1,315)
(e)
25 (9)— — 962 (3,756)(693)
(f)
Nine Months Ended September 30
(Dollars in Millions)		Beginning of Period BalanceNet Gains (Losses) Included in Net Income PurchasesSalesPrincipal PaymentsIssuancesSettlementsEnd of Period BalanceNet Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period
2024
Mortgage servicing rights$3,377 $(194)
(a)
$1 $(188)$— $191 
(c)
$— $3,187 $(194)
(a)
Net derivative assets and liabilities(1,885)(2,036)
(g)
912 (14)— — 2,211 (812)666 
(h)
2023
Available-for-sale securities
Obligations of state and political subdivisions$1 $—  $— $— $(1)$— $— $— $— 
Total available-for-sale1 —  — — (1)— — — — 
Mortgage servicing rights3,755 (37)
(a)
3 (440)— 301 
(c)
— 3,582 (37)
(a)
Net derivative assets and liabilities(3,199)(3,558)
(i)
430 (28)— — 2,599 (3,756)(1,925)
(j)
(a)Included in mortgage banking revenue.
(b)Approximately $89 million, $563 million and $(1) million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.
(c)Represents MSRs capitalized during the period.
(d)Approximately $20 million, $1.4 billion and $(1) million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.
(e)Approximately $35 million, $(1.4) billion and $1 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.
(f)Approximately $11 million, $(705) million and $1 million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.
(g)Approximately $185 million, $(2.2) billion and $(70) million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.
(h)Approximately $20 million, $716 million and $(70) million included in mortgage banking revenue, commercial products revenue and other noninterest income, respectively.
(i)Approximately $133 million and $(3.7) billion included in mortgage banking revenue and commercial products revenue, respectively.
(j)Approximately $11 million and $(1.9) billion included in mortgage banking revenue and commercial products revenue, respectively.
Assets Measured at Fair Value on Nonrecurring Basis
The following table summarizes the balances as of the measurement date of assets measured at fair value on a nonrecurring basis, and still held as of the reporting date:
September 30, 2024December 31, 2023
(Dollars in Millions)Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Loans(a)
$— $— $625 $625 $— $— $354 $354 
Other assets(b)
— — 16 16 — — 27 27 
(a)Represents the carrying value of loans for which adjustments were based on the fair value of the collateral, excluding loans fully charged-off.
(b)Primarily represents the fair value of foreclosed properties that were measured at fair value based on an appraisal or broker price opinion of the collateral subsequent to their initial acquisition.
Losses Recognized Related to Nonrecurring Fair Value Measurements
The following table summarizes losses recognized related to nonrecurring fair value measurements of individual assets or portfolios:
Three Months Ended September 30Nine Months Ended September 30
(Dollars in Millions)2024202320242023
Loans(a)
$116 $71 $279 $281 
Other assets(b)
1 1 4 2 
(a)Represents write-downs of loans which were based on the fair value of the collateral, excluding loans fully charged-off.
(b)Primarily represents related losses of foreclosed properties that were measured at fair value subsequent to their initial acquisition.
Fair Value Option
The following table summarizes the differences between the aggregate fair value carrying amount of the assets and liabilities for which the fair value option has been elected and the aggregate remaining contractual principal balance outstanding:
September 30, 2024December 31, 2023
(Dollars in Millions)Fair Value Carrying AmountContractual Principal OutstandingCarrying Amount Over (Under) Contractual Principal OutstandingFair Value Carrying AmountContractual Principal OutstandingCarrying Amount Over (Under) Contractual Principal Outstanding
Total loans(a)
$2,887 $2,848 $39 $2,011 $1,994 $17 
Time deposits7,655 7,657 (2)2,818 2,822 (4)
Long-term debt45 45 — — — — 
(a)Includes nonaccrual loans of $1 million carried at fair value with contractual principal outstanding of $1 million at September 30, 2024 and $1 million carried at fair value with contractual principal outstanding of $1 million at December 31, 2023. Includes loans 90 days or more past due of $3 million carried at fair value with contractual principal outstanding of $3 million at September 30, 2024 and $4 million carried at fair value with contractual principal outstanding of $4 million at December 31, 2023.
Estimated Fair Values of Financial Instruments
The estimated fair values of the Company’s financial instruments are shown in the table below:
September 30, 2024December 31, 2023
Carrying AmountFair ValueCarrying AmountFair Value
(Dollars in Millions)Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Financial Assets
Cash and due from banks$73,562 $73,562 $— $— $73,562 $61,192 $61,192 $— $— $61,192 
Federal funds sold and securities purchased under resale agreements6,426 — 6,426 — 6,426 2,543 — 2,543 — 2,543 
Investment securities held-to-maturity80,025 1,280 70,135 — 71,415 84,045 1,310 72,778 — 74,088 
Loans held for sale(a)
324 — — 324 324 190 — — 190 190 
Loans366,604 — — 363,988 363,988 366,456 — — 362,849 362,849 
Other(b)
2,436 — 1,910 526 2,436 2,377 — 1,863 514 2,377 
Financial Liabilities
Time deposits(c)
51,686 — 51,918 — 51,918 49,455 — 49,607 — 49,607 
Short-term borrowings(d)
21,302 — 21,174 — 21,174 12,976 — 12,729 — 12,729 
Long-term debt(e)
54,794 — 54,468 — 54,468 51,480 — 49,697 — 49,697 
Other(f)
4,800 — 1,327 3,473 4,800 5,432 — 1,406 4,026 5,432 
(a)Excludes mortgages held for sale for which the fair value option under applicable accounting guidance was elected.
(b)Includes investments in Federal Reserve Bank and Federal Home Loan Bank stock and tax-advantaged investments.
(c)Excludes time deposits for which the fair value option under applicable accounting guidance was elected.
(d)Excludes the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance.
(e)Excludes structured long-term notes for which the fair value option under applicable accounting guidance was elected.
(f)Includes operating lease liabilities and liabilities related to tax-advantaged investments.