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Fair Value (Tables)
 9 Months Ended
Sep. 30, 2018
Fair Value [Abstract]  
Fair Value Measurements - Recurring Basis Summary
Table 51: Fair Value Measurements – Recurring Basis Summary
 
September 30, 2018
 
 
December 31, 2017
 
In millions
Level 1

 
Level 2

 
Level 3

 
Total
Fair Value

 
 
Level 1

 
Level 2

 
Level 3

 
Total
Fair Value

 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage loans held for sale
 
 
$
628

 
$
3

 
$
631

 
 
 
 
$
829

 
$
3

 
$
832

 
Commercial mortgage loans held for sale
 
 
329

 
89

 
418

 
 
 
 
723

 
107

 
830

 
Securities available for sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and government agencies
$
16,422

 
429

 
 
 
16,851

 
 
$
14,088

 
433

 
 
 
14,521

 
Residential mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
 
27,902

 
 
 
27,902

 
 
 
 
25,406

 
 
 
25,406

 
Non-agency
 
 
84

 
2,268

 
2,352

 
 
 
 
97

 
2,661

 
2,758

 
Commercial mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
 
1,965

 
 
 
1,965

 
 
 
 
1,904

 
 
 
1,904

 
Non-agency
 
 
2,539

 
 
 
2,539

 
 
 
 
2,613

 
 
 
2,613

 
Asset-backed
 
 
5,299

 
293

 
5,592

 
 
 
 
5,065

 
332

 
5,397

 
Other debt
 
 
3,921

 
89

 
4,010

 
 
 
 
4,347

 
87

 
4,434

 
Total debt securities
16,422

 
42,139

 
2,650

 
61,211

 
 
14,088

 
39,865

 
3,080

 
57,033

 
Other (a)
 
 
 
 
 
 


 
 
524

 
61

 
 
 
585

 
Total securities available for sale
16,422

 
42,139

 
2,650

 
61,211

 
 
14,612

 
39,926

 
3,080

 
57,618

 
Loans
 
 
472

 
281

 
753

 
 
 
 
571

 
298

 
869

 
Equity investments (b)
591

 
59

 
1,042

 
1,904

 
 
 
 
 
 
1,036

 
1,265

 
Residential mortgage servicing rights
 
 
 
 
1,370

 
1,370

 
 
 
 
 
 
1,164

 
1,164

 
Commercial mortgage servicing rights
 
 
 
 
766

 
766

 
 
 
 
 
 
668

 
668

 
Trading securities (c)
1,678

 
1,883

 
2

 
3,563

 
 
1,243

 
1,670

 
2

 
2,915

 
Financial derivatives (c) (d)
 
 
1,781

 
8

 
1,789

 
 
 
 
2,864

 
10

 
2,874

 
Other assets
309

 
186

 
58

 
553

 
 
278

 
253

 
107

 
638

 
Total assets
$
19,000

 
$
47,477

 
$
6,269

 
$
72,958

 
 
$
16,133

 
$
46,836

 
$
6,475

 
$
69,673

 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other borrowed funds
$
517

 
$
361

 
$
9

 
$
887

 
 
$
1,079

 
$
254

 
$
11

 
$
1,344

 
Financial derivatives (d) (e)
 
 
2,600

 
342

 
2,942

 
 
 
 
2,369

 
487

 
2,856

 
Other liabilities
 
 
 
 
55

 
55

 
 
 
 
 
 
33

 
33

 
Total liabilities
$
517

 
$
2,961

 
$
406

 
$
3,884

 
 
$
1,079

 
$
2,623

 
$
531

 
$
4,233

 
(a)
Prior period amounts included $.6 billion of available for sale securities, primarily money market funds, that were reclassified to equity investments on January 1, 2018 as the result of the adoption of ASU 2016-01. See the Recently Adopted Accounting Standards portion of Note 1 Accounting Policies in our First Quarter 2018 Form 10-Q for additional details on this adoption.
(b)
Certain investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheet.
(c)
Included in Other assets on the Consolidated Balance Sheet.
(d)
Amounts at September 30, 2018 and December 31, 2017 are presented gross and are not reduced by the impact of legally enforceable master netting agreements that allow us to net positive and negative positions and cash collateral held or placed with the same counterparty. See Note 9 Financial Derivatives for additional information related to derivative offsetting.
(e)
Included in Other liabilities on the Consolidated Balance Sheet.
Reconciliation of Level 3 Assets and Liabilities
Table 52: Reconciliation of Level 3 Assets and Liabilities
Three Months Ended September 30, 2018
 
  
Total realized / unrealized
gains or losses for the 
period (a)
  
  
  
  
  
 
  
  
Unrealized
gains / losses
on assets and
liabilities held on
Consolidated
Balance Sheet at
September 30, 2018
(a) (b)
Level 3 Instruments Only
In millions
Fair 
Value
June 30,
2018

Included in
Earnings

Included
in Other
comprehensive
income
 
Purchases

Sales

Issuances

Settlements

Transfers
into
Level 3

 
Transfers
out of
Level 3

Fair
Value
Sept. 30,
2018

Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage loans
held for sale
$
4

 
 
 
$
2

$
(1
)
 
 
$
5

 
$
(7
)
$
3

 
 
Commercial mortgage
loans held for sale
91

$
1

 
 
 
 
 
$
(3
)
 
 
 
89

 
 
Securities available for sale

 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage-
backed non-agency
2,405

18

 
$
(1
)
 
 
 
(154
)
 
 
 
2,268

 
 
Asset-backed
308

2

 
(3
)
 
 
 
(14
)
 
 
 
293

 
 
Other debt
91

 
 
1

2

 
 
 
 
 
(5
)
89

 
 
Total securities
available for sale
2,804

20


(3
)
2





(168
)



(5
)
2,650

 
 
Loans
282

4

 
 
25

(18
)
 
(1
)
8

 
(19
)
281

 
 
Equity investments
1,167

81

 
 
52

(258
)
 
 
 
 
 
1,042

$
18

 
Residential mortgage
servicing rights
1,297

41

 
 
66

 
$
12

(46
)
 
 
 
1,370

41

 
Commercial mortgage
servicing rights
748

23

 
 
16

 
16

(37
)
 
 
 
766

23

 
Trading securities
2

 
 
 
 
 
 
 
 
 
 
2

 
 
Financial derivatives
16

9

 
 
 
 
 
(17
)
 
 
 
8

11

 
Other assets
63

(3
)
 
 
 
 
 
(2
)
 
 
 
58

(3
)
 
Total assets
$
6,474

$
176


$
(3
)
$
163

$
(277
)
$
28

$
(274
)
$
13


$
(31
)
$
6,269

$
90

 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other borrowed funds
$
7

 
 
 
 
 
$
18

$
(16
)
 
 
 
$
9

 
 
Financial derivatives
384

$
26

 
 
 
$
5

 
(73
)
 
 
 
342

$
32

 
Other liabilities
47

4

 
 
 
 
58

(54
)
 
 
 
55

 
 
Total liabilities
$
438

$
30






$
5

$
76

$
(143
)





$
406

$
32

 
Net gains (losses)
 
$
146

(c) 
 
 
 
 
 
 
 
 
 
$
58

(d) 

Three Months Ended September 30, 2017
 
  
Total realized / unrealized
gains or losses for the 
period (a)
  
  
  
  
  
  
 
  
Unrealized
gains / losses
on assets and
liabilities held on
Consolidated
Balance Sheet at
September 30, 2017
(a) (b)
Level 3 Instruments Only
In millions
Fair 
Value
June
30,
2017

Included in
Earnings

Included
in Other
comprehensive
income
 
Purchases

Sales

Issuances

Settlements

Transfers
into
Level 3

Transfers
out of
Level 3

 
Fair
Value
Sept.
30,
2017

Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage loans
held for sale
$
5

 
 
 
$
2

 
 
 
$
1

$
(6
)
 
$
2

 
 
Commercial mortgage
loans held for sale
982

$
14

 
 
 
$
(1,280
)
$
1,066

$
(24
)
 
 
 
758

$
(2
)
 
Securities available for sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage-
backed non-agency
2,964

19

 
$
61

 
 
 
(199
)
 
 
 
2,845

 
 
Asset-backed
361

3

 
4

 
(1
)
 
(19
)
 
 
 
348

 
 
Other debt
78

 
 
3

9

(7
)
 
 
 
 
 
83

 
 
Total securities
available for sale
3,403

22

 
68

9

(8
)

(218
)


 
3,276


 
Loans
290

2

 
 
20

(3
)
 
(14
)
5

(9
)
 
291

 
 
Equity investments
987

54

 
 
103

(83
)
 
 
 
 
 
1,061

38

 
Residential mortgage
servicing rights
1,249

(10
)
 
 
18

 
14

(45
)
 
 
 
1,226

(9
)
 
Commercial mortgage
servicing rights
618

6

 
 
14

 
19

(29
)
 
 
 
628

6

 
Trading securities
2

 
 
 
 
 
 
 
 
 
 
2

 
 
Financial derivatives
22

16

 
 
1

 
 
(17
)
 
 
 
22

22

 
Other assets
89

5

 
 
 
 
 
 
 
 
 
94

5

 
Total assets
$
7,647

$
109

 
$
68

$
167

$
(1,374
)
$
1,099

$
(347
)
$
6

$
(15
)
 
$
7,360

$
60

 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other borrowed funds
$
8

 
 
 
 
 
$
16

$
(15
)
 
 
 
$
9

 
 
Financial derivatives
248

$
16

 
 
 
$
1

 
(17
)
 
 
 
248

$
13

 
Other liabilities
33

3

 
 
 
 
16

(18
)
 
 
 
34

4

 
Total liabilities
$
289

$
19

 


$
1

$
32

$
(50
)


 
$
291

$
17

 
Net gains (losses)
 
$
90

(c)
 
 
 
 
 
 
 
 
 
$
43

(d)
Nine Months Ended September 30, 2018
 
  
Total realized / unrealized
gains or losses for the 
period (a)
  
  
  
  
  
  
 
  
Unrealized
gains / losses
on assets and
liabilities held on
Consolidated
Balance Sheet at
September 30, 2018
(a) (b)
Level 3 Instruments Only
In millions
Fair
Value
Dec. 31,
2017

Included in
Earnings

Included
in Other
comprehensive
income
 
Purchases

Sales

Issuances

Settlements

Transfers
into
Level 3

Transfers
out of
Level 3

 
Fair
Value
Sept. 30,
2018

Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage loans
held for sale
$
3

 
 
 
$
4

$
(2
)
 
 
$
10

$
(12
)
 
$
3

 
 
Commercial mortgage
loans held for sale
107

 
 
 
 
 
 
$
(18
)
 
 
 
89


 
Securities available for sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage-
backed non-agency
2,661

$
38

 
$
7

 
 
 
(438
)
 
 
 
2,268

 
 
Asset-backed
332

2

 
1

 
 
 
(42
)
 
 
 
293

 
 
Other debt
87

5

 
8

6

 
 
(12
)
 
(5
)
 
89

 
 
Total securities
available for sale
3,080

45

 
16

6


 
(492
)
 
(5
)
 
2,650


 
Loans
298

9

 
 
80

(27
)
 
(44
)
8

(43
)
 
281

$
1

 
Equity investments
1,036

169

 
 
213

(376
)
 
 
 
 
 
1,042

77

 
Residential mortgage
servicing rights
1,164

188

 
 
113

 
$
35

(130
)
 
 
 
1,370

180

 
Commercial mortgage
servicing rights
668

104

 
 
60

 
39

(105
)
 
 
 
766

104

 
Trading securities
2

 
 
 
 
 
 
 
 
 
 
2

 
 
Financial derivatives
10

33

 
 
2

 
 
(37
)
 
 
 
8

37

 
Other assets
107

(5
)
 
 
 
 
 
(44
)
 
 
 
58

(5
)
 
Total assets
$
6,475

$
543

 
$
16

$
478

$
(405
)
$
74

$
(870
)
$
18

$
(60
)
 
$
6,269

$
394

 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other borrowed funds
$
11

 
 
 
 
 
$
50

$
(52
)
 
 
 
$
9

 
 
Financial derivatives
487

$
3

 
 
 
$
10

 
(158
)
 
 
 
342

$
5

 
Other liabilities
33

9

 
 
$
12

 
92

(91
)
 
 
 
55

8

 
Total liabilities
$
531

$
12

 
 
$
12

$
10

$
142

$
(301
)
 
 
 
$
406

$
13

 
Net gains (losses)
 
$
531

(c) 
 
 
 
 
 
 
 
 
 
$
381

(d) 


Nine Months Ended September 30, 2017
 
  
Total realized / unrealized
gains or losses for the 
period (a)
  
  
  
  
  
  
 
  
Unrealized
gains / losses
on assets and
liabilities held on
Consolidated
Balance Sheet at
September 30, 2017
(a) (b)
Level 3 Instruments Only
In millions
Fair
Value
Dec. 31,
2016

Included in
Earnings

Included
in Other
comprehensive
income
 
Purchases

Sales

Issuances

Settlements

Transfers
into
Level 3

Transfers
out of
Level 3

 
Fair
Value
Sept.
30,
2017

Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage loans
held for sale
$
2

 
 
 
$
8

$
(1
)
 
 
$
6

$
(13
)
 
$
2

 
 
Commercial mortgage
loans held for sale
1,400

$
51

 
 
 
(3,640
)
$
3,011

$
(64
)
 
 
 
758

$
(13
)
 
Securities available for sale
 
 
 
 
 
 
 
 
 
 
 

 
 
Residential mortgage-
backed non-agency
3,254

69

 
$
130

 
 
 
(608
)
 
 
 
2,845

(1
)
 
Commercial mortgage-
backed non-agency
 
12

 
 
 
(12
)
 
 
 
 
 

 
 
Asset-backed
403

11

 
19

 
(26
)
 
(59
)
 
 
 
348

 
 
Other debt
66

 
 
15

11

(8
)
 
(1
)
 
 
 
83

 
 
Total securities
available for sale
3,723

92

 
164

11

(46
)
 
(668
)


 
3,276

(1
)
 
Loans
335

(3
)
 
 
60

(22
)
 
(51
)
11

(39
)
 
291

(8
)
 
Equity investments
1,331

211

 
 
184

(482
)
 
 
 
(183
)
(e)
1,061

127

 
Residential mortgage
servicing rights
1,182

(40
)
 
 
172

 
42

(130
)
 
 
 
1,226

(37
)
 
Commercial mortgage
servicing rights
576

20

 
 
48

 
65

(81
)
 
 
 
628

19

 
Trading securities
2

 
 
 
 
 
 
 
 
 
 
2

 
 
Financial derivatives
40

33

 
 
3

 
 
(54
)
 
 
 
22

58

 
Other assets
239

10

 
 
 
 
 
(155
)
 
 
 
94

10

 
Total assets
$
8,830

$
374

 
$
164

$
486

$
(4,191
)
$
3,118

$
(1,203
)
$
17

$
(235
)
 
$
7,360

$
155

 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other borrowed funds
$
10

 
 
 
 
 
$
51

$
(52
)
 
 
 
$
9

 
 
Financial derivatives
414

$
34

 
 
 
$
3

 
(203
)
 
 
 
248

$
36

 
Other liabilities
9

22

 
 
 
 
165

(162
)
 
 
 
34

24

 
Total liabilities
$
433

$
56

 


$
3

$
216

$
(417
)


 
$
291

$
60

 
Net gains (losses)
 
$
318

(c)
 
 
 
 
 
 
 
 
 
$
95

(d)
(a)
Losses for assets are bracketed while losses for liabilities are not.
(b)
The amount of the total gains or losses for the period included in earnings that is attributable to the change in unrealized gains or losses related to those assets and liabilities held at the end of the reporting period.
(c)
Net gains (losses) realized and unrealized included in earnings related to Level 3 assets and liabilities included amortization and accretion. The amortization and accretion amounts were included in Interest income on the Consolidated Income Statement and the remaining net gains (losses) realized and unrealized were included in Noninterest income on the Consolidated Income Statement.
(d)
Net unrealized gains (losses) related to assets and liabilities held at the end of the reporting period were included in Noninterest income on the Consolidated Income Statement.
(e)
Reflects transfer out of Level 3 associated with change in valuation methodology for certain equity investments subject to the Volcker Rule provisions of the Dodd-Frank Act.
Fair Value Measurements - Recurring Quantitative Information
Table 53: Fair Value Measurements – Recurring Quantitative Information

September 30, 2018
Level 3 Instruments Only
Dollars in millions
Fair Value

Valuation Techniques
Unobservable Inputs
Range (Weighted-Average)
Commercial mortgage loans held for sale
$
89

Discounted cash flow
Spread over the benchmark curve (a)
520bps - 1,730bps (1,139bps)
Residential mortgage-backed
non-agency securities
2,268

Priced by a third-party vendor using a discounted cash flow pricing model
Constant prepayment rate
1.0% - 33.0% (10.7%)
Constant default rate
0.0% - 17.8% (5.4%)
Loss Severity
10.0% - 100.0% (49.5%)
Spread over the benchmark curve (a)
163bps weighted-average
Asset-backed securities
293

Priced by a third-party vendor using a discounted cash flow pricing model
Constant prepayment rate
1.0% - 19.0% (8.5%)
Constant default rate
1.0% - 9.3% (4.0%)
Loss Severity
15.0% - 100.0% (63.1%)
Spread over the benchmark curve (a)
123bps weighted-average
Loans
140

Consensus pricing (b)
Cumulative default rate
11.0% - 100.0% (81.5%)
Loss severity
0.0% - 100.0% (17.7%)
Discount rate
5.5% - 8.3% (5.8%)
 
86

Discounted cash flow
Loss severity
8.0% weighted-average
Discount rate
5.8% weighted-average
 
55

Consensus pricing (b)
Credit & Liquidity Discount
0.0% - 99.0% (61.0%)
Equity investments
1,042

Multiple of adjusted earnings
Multiple of earnings
5.0x - 29.7x (8.6x)
Residential mortgage servicing rights
1,370

Discounted cash flow
Constant prepayment rate
0.0% - 46.9% (8.1%)
Spread over the benchmark curve (a)
365bps - 1,783bps (820bps)
Commercial mortgage servicing rights
766

Discounted cash flow
Constant prepayment rate
5.4% - 13.8% (6.4%)
Discount rate
5.9% - 8.9% (8.6%)
Financial derivatives - Swaps related to
sales of certain Visa Class B
common shares
(272
)
Discounted cash flow
Conversion factor of Class B shares into Class A shares
163.0% weighted-average
Estimated growth rate of Visa Class a share price
16.0%
Estimated length of litigation resolution date
Q4 2020
Insignificant Level 3 assets, net of
liabilities (c)
26

 
 
 
Total Level 3 assets, net of liabilities (d)
$
5,863

 
 
 
December 31, 2017
Level 3 Instruments Only
Dollars in millions
Fair Value

Valuation Techniques
Unobservable Inputs
Range (Weighted-Average)
Commercial mortgage loans held for sale
$
107

Discounted cash flow
Spread over the benchmark curve (a)
525bps - 1,470bps (1,020bps)
Residential mortgage-backed
non-agency securities
2,661

Priced by a third-party vendor using a discounted cash flow pricing model
Constant prepayment rate
1.0% - 31.6% (10.8%)
Constant default rate
0.1% - 18.8% (5.4%)
Loss severity
15.0% - 100.0% (51.5%)
Spread over the benchmark curve (a)
190bps weighted-average
Asset-backed securities
332

Priced by a third-party vendor using a discounted cash flow pricing model
Constant prepayment rate
1.0% - 19.0% (7.9%)
Constant default rate
2.0% - 11.8% (5.4%)
Loss severity
15.0% - 100.0% (68.5%)
Spread over the benchmark curve (a)
179bps weighted-average
Loans
133

Consensus pricing (b)
Cumulative default rate
11.0% - 100.0% (85.7%)
Loss severity
0.0% - 100.0% (20.6%)
Discount rate
5.5% - 8.0% (5.7%)
 
104

Discounted cash flow
Loss severity
8.0% weighted-average
Discount rate
4.9% weighted-average
 
61

Consensus pricing (b)
Credit and Liquidity discount
0.0% - 99.0% (61.1%)
Equity investments
1,036

Multiple of adjusted earnings
Multiple of earnings
4.5x - 29.7x (8.3x)
Residential mortgage servicing rights
1,164

Discounted cash flow
Constant prepayment rate
0.0% - 36.7% (10.0%)
Spread over the benchmark curve (a)
390bps - 1,839bps (830bps)
Commercial mortgage servicing rights
668

Discounted cash flow
Constant prepayment rate
7.7% - 14.2% (8.5%)
Discount rate
6.4% - 7.9% (7.8%)
Financial derivatives - Swaps related to
sales of certain Visa Class B
common shares
(380
)
Discounted cash flow
Estimated conversion factor of Visa Class B shares into Class A shares
163.8% weighted-average
Estimated growth rate of Visa Class
A share price
16.0%
Estimated length of litigation
resolution date
Q2 2021
Insignificant Level 3 assets, net of
liabilities (c)
58

 
 
 
Total Level 3 assets, net of liabilities (d)
$
5,944

 
 
 
(a)
The assumed yield spread over the benchmark curve for each instrument is generally intended to incorporate non-interest rate risks, such as credit and liquidity risks.
(b)
Consensus pricing refers to fair value estimates that are generally internally developed using information such as dealer quotes or other third-party provided valuations or comparable asset prices.
(c)
Represents the aggregate amount of Level 3 assets and liabilities measured at fair value on a recurring basis that are individually and in the aggregate insignificant. The amount includes certain financial derivative assets and liabilities, trading securities, other debt securities, residential mortgage loans held for sale, other assets, other borrowed funds and other liabilities.
(d)
Consisted of total Level 3 assets of $6.3 billion and total Level 3 liabilities of $.4 billion as of September 30, 2018 and $6.4 billion and $.5 billion as of December 31, 2017, respectively.
Fair Value Measurements - Nonrecurring
Table 54: Fair Value Measurements – Nonrecurring
 
Fair Value (a)
 
Gains (Losses)
Three months ended
 
Gains (Losses)
Nine months ended
 
In millions
September 30
2018

 
December 31
2017

 
September 30
2018

 
September 30
2017

 
September 30
2018

 
September 30
2017

 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Nonaccrual loans
$
97

 
$
100

 
$
(11
)
 
$
(1
)
 
$
(14
)
 
$
(11
)
 
OREO and foreclosed assets
53

 
70

 
(2
)
 
(5
)
 
(2
)
 
(10
)
 
Long-lived assets
3

 
80

 
(1
)
 
(3
)
 
(1
)
 
(11
)
 
Total assets
$
153

 
$
250

 
$
(14
)
 
$
(9
)
 
$
(17
)
 
$
(32
)
 
(a)
All Level 3 as of September 30, 2018 and December 31, 2017.
Fair Value Measurements - Nonrecurring Quantitative Information
Table 55: Fair Value Measurements – Nonrecurring Quantitative Information
Level 3 Instruments Only
In millions
Fair Value

 
Valuation Techniques
Unobservable Inputs
September 30, 2018
 
 
 
 
Assets
 
 
 
 
Nonaccrual loans
$
97

 
Fair value of property or collateral
Appraised value/sales price
OREO and foreclosed assets
53

 
Fair value of property or collateral
Appraised value/sales price
Long-lived assets
3

 
Fair value of property or collateral
Appraised value/sales price
Total assets
$
153

 
 
 
December 31, 2017
 
 
 
 
Assets
 
 
 
 
Nonaccrual loans
$
100

 
Fair value of property or collateral
Appraised value/sales price
OREO and foreclosed assets
70

 
Fair value of property or collateral
Appraised value/sales price
Long-lived assets
47

 
Fair value of property or collateral
Appraised value/sales price
 
20

 
Fair value of property or collateral
Broker opinion
 
13

 
Fair value of property or collateral
Projected income/required improvement costs
Total assets
$
250

 
 
 
Fair Value Option - Fair Value and Principal Balances
Table 56: Fair Value Option – Fair Value and Principal Balances
 
September 30, 2018
 
December 31, 2017
 
In millions
Fair Value

 
Aggregate Unpaid
Principal Balance

 
Difference

 
Fair Value

 
Aggregate Unpaid
Principal Balance

 
Difference

 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage loans held for sale
 
 
 
 
 
 
 
 
 
 
 
 
Performing loans
$
623

 
$
609

 
$
14

 
$
822

 
$
796

 
$
26

 
Accruing loans 90 days or more past due
2

 
2

 


 
3

 
3

 


 
Nonaccrual loans
6

 
7

 
(1
)
 
7

 
8

 
(1
)
 
Total
$
631

 
$
618

 
$
13

 
$
832

 
$
807

 
$
25

 
Commercial mortgage loans held for sale (a)
 
 
 
 
 
 
 
 
 
 
 
 
Performing loans
$
417

 
$
438

 
$
(21
)
 
$
828

 
$
842

 
$
(14
)
 
Nonaccrual loans
1

 
2

 
(1
)
 
2

 
3

 
(1
)
 
Total
$
418

 
$
440

 
$
(22
)
 
$
830

 
$
845

 
$
(15
)
 
Residential mortgage loans
 
 
 
 
 
 
 
 
 
 
 
 
Performing loans
$
263

 
$
284

 
$
(21
)
 
$
251

 
$
280

 
$
(29
)
 
Accruing loans 90 days or more past due
313

 
325

 
(12
)
 
421

 
431

 
(10
)
 
Nonaccrual loans
177

 
288

 
(111
)
 
197

 
317

 
(120
)
 
Total
$
753

 
$
897

 
$
(144
)
 
$
869

 
$
1,028

 
$
(159
)
 
Other assets
$
167

 
$
175

 
$
(8
)
 
$
216

 
$
212

 
$
4

 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Other borrowed funds
$
62

 
$
64

 
$
(2
)
 
$
84

 
$
85

 
$
(1
)
 
(a)
There were no accruing loans 90 days or more past due within this category at September 30, 2018 or December 31, 2017.
Fair Value Option - Changes in Fair Value
Table 57: Fair Value Option – Changes in Fair Value (a)
 
Gains (Losses)
 
Gains (Losses)
 
 
Three months ended
 
Nine months ended
 
 
September 30

 
September 30

 
September 30

 
September 30

 
In millions
2018

 
2017

 
2018

 
2017

 
Assets
 
 
 
 
 
 
 
 
Residential mortgage loans held for sale
$
13

 
$
39

 
$
25

 
$
101

 
Commercial mortgage loans held for sale
$
16

 
$
15

 
$
41

 
$
58

 
Residential mortgage loans
$
7

 
$
7

 
$
17

 
$
18

 
Other assets
$
(1
)
 
$
16

 
$
(11
)
 
$
36

 
Liabilities
 
 
 
 
 
 
 
 
Other liabilities
$
(3
)
 
$
(5
)
 
$
(8
)
 
$
(24
)
 
(a)
The impact on earnings of offsetting hedged items or hedging instruments is not reflected in these amounts.
Additional Fair Value Information Related to Other Financial Instruments
Table 58: Additional Fair Value Information Related to Other Financial Instruments
 
Carrying

 
Fair Value
 
In millions
Amount

 
Total

 
Level 1

 
Level 2

 
Level 3

 
September 30, 2018
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
$
5,248

 
$
5,248

 
$
5,248

 
 
 
 
 
Interest-earning deposits with banks
19,800

 
19,800

 
 
 
$
19,800

 
 
 
Securities held to maturity
19,593

 
19,021

 
735

 
18,137

 
$
149

 
Net loans (excludes leases)
212,502

 
212,151

 
 
 
 
 
212,151

 
Other assets
4,865

 
4,865

 
 
 
4,858

 
7

 
Total assets
$
262,008

 
$
261,085

 
$
5,983

 
$
42,795

 
$
212,307

 
Liabilities
 
 
 
 
 
 
 
 
 
 
Time deposits (a)
$
18,454

 
$
18,115

 
 
 
$
18,115

 
 
 
Borrowed funds
57,068

 
57,707

 
 
 
55,873

 
$
1,834

 
Unfunded loan commitments and letters of credit
288

 
288

 
 
 
 
 
288

 
Other liabilities
432

 
432

 
 
 
432

 
 
 
Total liabilities
$
76,242

 
$
76,542

 
 
 
$
74,420

 
$
2,122

 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
$
5,249

 
$
5,249

 
$
5,249

 
 
 
 
 
Interest-earning deposits with banks
28,595

 
28,595

 
 
 
$
28,595

 
 
 
Securities held to maturity
18,513

 
18,565

 
765

 
17,658

 
$
142

 
Net loans (excludes leases)
209,044

 
211,175

 
 
 
 
 
211,175

 
Other assets
6,078

 
6,736

 
 
 
5,949

 
787

 
Total assets
$
267,479

 
$
270,320

 
$
6,014

 
$
52,202

 
$
212,104

 
Liabilities
 
 
 
 
 
 
 
 
 
 
Deposits
$
265,053

 
$
264,854

 
 
 
$
264,854

 
 
 
Borrowed funds
57,744

 
58,503

 
 
 
56,853

 
$
1,650

 
Unfunded loan commitments and letters of credit
297

 
297

 
 
 
 
 
297

 
Other liabilities
399

 
399

 
 
 
399

 
 
 
Total liabilities
$
323,493

 
$
324,053

 

 
$
322,106

 
$
1,947

 

(a)
The amount at September 30, 2018 excludes deposit liabilities with no defined or contractual maturities in accordance with the adoption of ASU 2016-01. See the Recently Adopted Accounting Standards portion of Note 1 Accounting Policies in our First Quarter 2018 Form 10-Q for additional details on this adoption.