FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2019

Balances of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis:

TABLE 17.1



(in millions)	Level 1		Level 2		Level 3		Total
June 30, 2019
Assets Measured at Fair Value
Debt securities available for sale
U.S. government agencies	$	—	$	172	$	—	$	172
U.S. government-sponsored entities	—		301		—		301
Residential mortgage-backed securities:
Agency mortgage-backed securities	—		1,315		—		1,315
Agency collateralized mortgage obligations	—		1,242		—		1,242
Commercial mortgage-backed securities	—		232		—		232
States of the U.S. and political subdivisions	—		15		—		15
Other debt securities	—		2		—		2
Total debt securities available for sale	—		3,279		—		3,279
Loans held for sale	—		39		—		39
Derivative financial instruments
Trading	—		145		—		145
Not for trading	—		1		3		4
Total derivative financial instruments	—		146		3		149
Total assets measured at fair value on a recurring basis	$	—	$	3,464	$	3	$	3,467
Liabilities Measured at Fair Value
Derivative financial instruments
Trading	$	—	$	25	$	—	$	25
Not for trading	—		2		—		2
Total derivative financial instruments	—		27		—		27
Total liabilities measured at fair value on a recurring basis	$	—	$	27	$	—	$	27



(in millions)	Level 1		Level 2		Level 3		Total
December 31, 2018
Assets Measured at Fair Value
Debt securities available for sale
U.S. government agencies	$	—	$	187	$	—	$	187
U.S. government-sponsored entities	—		313		—		313
Residential mortgage-backed securities:
Agency mortgage-backed securities	—		1,429		—		1,429
Agency collateralized mortgage obligations	—		1,161		—		1,161
Commercial mortgage-backed securities	—		228		—		228
States of the U.S. and political subdivisions	—		21		—		21
Other debt securities	—		2		—		2
Total debt securities available for sale	—		3,341		—		3,341
Loans held for sale	—		14		—		14
Derivative financial instruments
Trading	—		42		1		43
Total derivative financial instruments	—		42		1		43
Total assets measured at fair value on a recurring basis	$	—	$	3,397	$	1	$	3,398
Liabilities Measured at Fair Value
Derivative financial instruments
Trading	$	—	$	36	$	—	$	36
Not for trading	—		3		—		3
Total derivative financial instruments	—		39		—		39
Total liabilities measured at fair value on a recurring basis	$	—	$	39	$	—	$	39

Additional Information about Assets Measured at Fair Value on Recurring Basis

The following table presents additional information about assets measured at fair value on a recurring basis and for which we have utilized Level 3 inputs to determine fair value:

TABLE 17.2



(in millions)	Interest Rate Lock Commitments			Total
Six Months Ended June 30, 2019
Balance at beginning of period	$	1		$	1
Purchases, issuances, sales and settlements:
Purchases	3			3
Settlements	(1		)	(1		)
Balance at end of period	$	3		$	3
Year Ended December 31, 2018
Balance at beginning of period	$	2		$	2
Purchases, issuances, sales and settlements:
Purchases	5			5
Settlements	(6		)	(6		)
Balance at end of period	$	1		$	1

Additional Information about Assets Measured at Fair Value on Non-Recurring Basis

For assets measured at fair value on a non-recurring basis still held at the Balance Sheet date, the following table provides the hierarchy level and the fair value of the related assets or portfolios:

TABLE 17.3



(in millions)	Level 1		Level 2		Level 3		Total
June 30, 2019
Impaired loans	$	—	$	—	$	5	$	5
Other real estate owned	—		—		2		2
Other assets - SBA servicing asset	—		—		4		4
Other assets - MSR	—		—		25		25
December 31, 2018
Impaired loans	$	—	$	—	$	15	$	15
Other real estate owned	—		—		5		5
Other assets - SBA servicing asset	—		—		4		4

Fair Values of Financial Instruments

The fair values of our financial instruments are as follows:

TABLE 17.4



					Fair Value Measurements
(in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
June 30, 2019
Financial Assets
Cash and cash equivalents	$	499	$	499	$	499	$	—	$	—
Debt securities available for sale	3,279		3,279		—		3,279		—
Debt securities held to maturity	3,079		3,093		—		3,093		—
Net loans and leases, including loans held for sale	22,687		22,576		—		39		22,537
Loan servicing rights	42		44		—		—		44
Derivative assets	149		149		—		146		3
Accrued interest receivable	113		113		113		—		—
Financial Liabilities
Deposits	23,731		23,735		18,247		5,488		—
Short-term borrowings	3,711		3,714		3,714		—		—
Long-term borrowings	1,338		1,341		—		—		1,341
Derivative liabilities	27		27		—		27		—
Accrued interest payable	26		26		26		—		—
December 31, 2018
Financial Assets
Cash and cash equivalents	$	488	$	488	$	488	$	—	$	—
Debt securities available for sale	3,341		3,341		—		3,341		—
Debt securities held to maturity	3,254		3,155		—		3,155		—
Net loans and leases, including loans held for sale	21,995		21,742		—		14		21,728
Loan servicing rights	41		45		—		—		45
Derivative assets	43		43		—		42		1
Accrued interest receivable	101		101		101		—		—
Financial Liabilities
Deposits	23,455		23,411		18,142		5,269		—
Short-term borrowings	4,129		4,130		4,130		—		—
Long-term borrowings	627		618		—		—		618
Derivative liabilities	39		39		—		39		—
Accrued interest payable	20		20		20		—		—