FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

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 19.1

(in millions)	Level 1		Level 2		Level 3		Total
September 30, 2020
Assets Measured at Fair Value
Debt securities available for sale
U.S. Treasury	$	300	$	—	$	—	$	300
U.S. government agencies	—		160		—		160
U.S. government-sponsored entities	—		137		—		137
Residential mortgage-backed securities:
Agency mortgage-backed securities	—		1,096		—		1,096
Agency collateralized mortgage obligations	—		976		—		976
Commercial mortgage-backed securities	—		416		—		416
States of the U.S. and political subdivisions (municipals)	—		14		—		14
Other debt securities	—		2		—		2
Total debt securities available for sale	300		2,801		—		3,101
Loans held for sale	—		138		—		138
Derivative financial instruments
Trading	—		397		—		397
Not for trading	—		4		22		26
Total derivative financial instruments	—		401		22		423
Total assets measured at fair value on a recurring basis	$	300	$	3,340	$	22	$	3,662
Liabilities Measured at Fair Value
Derivative financial instruments
Trading	$	—	$	42	$	—	$	42
Not for trading	—		3		—		3
Total derivative financial instruments	—		45		—		45
Total liabilities measured at fair value on a recurring basis	$	—	$	45	$	—	$	45

(in millions)	Level 1		Level 2		Level 3		Total
December 31, 2019
Assets Measured at Fair Value
Debt securities available for sale
U.S. government agencies	$	—	$	151	$	—	$	151
U.S. government-sponsored entities	—		226		—		226
Residential mortgage-backed securities:
Agency mortgage-backed securities	—		1,314		—		1,314
Agency collateralized mortgage obligations	—		1,240		—		1,240
Commercial mortgage-backed securities	—		345		—		345
States of the U.S. and political subdivisions (municipals)	—		11		—		11
Other debt securities	—		2		—		2
Total debt securities available for sale	—		3,289		—		3,289
Loans held for sale	—		41		—		41
Derivative financial instruments
Trading	—		149		—		149
Not for trading	—		2		3		5
Total derivative financial instruments	—		151		3		154
Total assets measured at fair value on a recurring basis	$	—	$	3,481	$	3	$	3,484
Liabilities Measured at Fair Value
Derivative financial instruments
Trading	$	—	$	24	$	—	$	24
Not for trading	—		1		—		1
Total derivative financial instruments	—		25		—		25
Total liabilities measured at fair value on a recurring basis	$	—	$	25	$	—	$	25

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 19.2 

(in millions)	Interest Rate Lock Commitments		Total
Nine Months Ended September 30, 2020
Balance at beginning of period	$	3	$	3
Purchases, issuances, sales and settlements:
Issuances	22		22
Settlements	(3)		(3)
Balance at end of period	$	22	$	22
Year Ended December 31, 2019
Balance at beginning of period	$	1	$	1
Purchases, issuances, sales and settlements:
Issuances	3		3
Settlements	(1)		(1)
Balance at end of period	$	3	$	3

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 19.3

(in millions)	Level 1		Level 2		Level 3		Total
September 30, 2020
Collateral dependent loans	$	—	$	—	$	45	$	45
Other real estate owned	—		—		9		9
Other assets - SBA servicing asset	—		—		3		3
Other assets - MSRs	—		—		34		34
December 31, 2019
Impaired loans	$	—	$	—	$	5	$	5
Other real estate owned	—		—		4		4
Other assets - SBA servicing asset	—		—		3		3
Other assets - MSRs	—		—		30		30

Fair Values of Financial Instruments

The fair values of our financial instruments are as follows:

TABLE 19.4

					Fair Value Measurements
(in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
September 30, 2020
Financial Assets
Cash and cash equivalents	$	900	$	900	$	900	$	—	$	—
Debt securities available for sale	3,101		3,101		300		2,801		—
Debt securities held to maturity	2,966		3,072		—		3,072		—
Net loans and leases, including loans held for sale	25,996		25,872		—		138		25,734
Loan servicing rights	37		37		—		—		37
Derivative assets	423		423		—		401		22
Accrued interest receivable	90		90		90		—		—
Financial Liabilities
Deposits	28,836		28,882		24,811		4,071		—
Short-term borrowings	1,899		1,904		1,904		—		—
Long-term borrowings	1,397		1,379		—		—		1,379
Derivative liabilities	45		45		—		45		—
Accrued interest payable	14		14		14		—		—
December 31, 2019
Financial Assets
Cash and cash equivalents	$	599	$	599	$	599	$	—	$	—
Debt securities available for sale	3,289		3,289		—		3,289		—
Debt securities held to maturity	3,275		3,305		—		3,305		—
Net loans and leases, including loans held for sale	23,144		22,930		—		41		22,889
Loan servicing rights	46		48		—		—		48
Derivative assets	154		154		—		151		3
Accrued interest receivable	109		109		109		—		—
Financial Liabilities
Deposits	24,786		24,797		20,058		4,739		—
Short-term borrowings	3,216		3,219		3,219		—		—
Long-term borrowings	1,340		1,355		—		—		1,355
Derivative liabilities	25		25		—		25		—
Accrued interest payable	21		21		21		—		—