FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2014

Difference between aggregate fair value and aggregate unpaid principal balance for residential mortgage loans held-for-sale

The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for residential mortgage loans held for sale measured at fair value:

December 31, 2014

December 31, 2013

(in millions)

Aggregate Fair Value

Aggregate Unpaid Principal

Aggregate Fair Value Less Aggregate Unpaid Principal

Aggregate Fair Value

Aggregate Unpaid Principal

Aggregate Fair Value Less Aggregate Unpaid Principal

Residential mortgage loans held for sale, at fair value

$213

$206

$176

$173

Difference between aggregate fair value and aggregate unpaid principal balance for commercial mortgage loans held-for-sale

The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for commercial and commercial real estate loans held for sale measured at fair value:



	December 31, 2014
(in millions)	Aggregate Fair Value		Aggregate Unpaid Principal		Aggregate Fair Value Less Aggregate Unpaid Principal
Commercial and commercial real estate loans held for sale, at fair value		$43		$43		$—

Assets and liabilities measured on recurring basis

The following table presents assets and liabilities measured at fair value, including gross derivative assets and liabilities on a recurring basis at December 31, 2014:



(in millions)	Total		Level 1		Level 2		Level 3
Securities available for sale:
Mortgage-backed securities		$18,606		$—		$18,606		$—
State and political subdivisions	10		—		10		—
Equity securities	25		8		17		—
U.S. Treasury	15		15		—		—
Total securities available for sale	18,656		23		18,633		—
Residential loans held for sale	213		—		213		—
Commercial and commercial real estate loans held for sale	43		—		43		—
Total loans held for sale	256		—		256		—
Derivative assets:
Interest rate swaps	613		—		613		—
Foreign exchange contracts	170		—		170		—
Other contracts	7		—		7		—
Total derivative assets	790		—		790		—
Venture capital investments and other investments	5		—		—		5
Total assets		$19,707		$23		$19,679		$5
Derivative liabilities:
Interest rate swaps		$600		$—		$600		$—
Foreign exchange contracts	164		—		164		—
Other contracts	9		—		9		—
Total derivative liabilities	773		—		773		—
Total liabilities		$773		$—		$773		$—

The following table presents assets and liabilities measured at fair value including gross derivative assets and liabilities on a recurring basis at December 31, 2013:



(in millions)	Total		Level 1		Level 2		Level 3
Securities available for sale:
Mortgage-backed securities		$15,945		$—		$15,945		$—
State and political subdivisions	10		—		10		—
Equity securities	25		8		17		—
U.S. Treasury	15		15		—		—
Total securities available for sale	15,995		23		15,972		—
Residential loans held for sale	176		—		176		—
Derivative assets:
Interest rate swaps	677		—		677		—
Foreign exchange contracts	94		—		94		—
Other contracts	7		—		7		—
Total derivative assets	778		—		778		—
Venture capital investments and investments	5		—		—		5
Total assets		$16,954		$23		$16,926		$5
Derivative liabilities:
Interest rate swaps		$970		$—		$970		$—
Foreign exchange contracts	87		—		87		—
Other contracts	10		—		10		—
Total derivative liabilities	1,067		—		1,067		—
Total liabilities		$1,067		$—		$1,067		$—

The changes in Level 3 assets measured at fair value on a recurring basis are summarized as follows:



	Year Ended December 31,
(in millions)	2014		2013			2012
Balance as of January 1		$5		$6			$57
Purchases, issuances, sales and settlements:
Purchases	—		—			1
Sales	—		(4		)	(45		)
Settlements	—		3			23
Other net gains (losses)	—		—			(30		)
Balance as of December 31		$5		$5			$6
Net unrealized gain (loss) included in net income for the year relating to assets held at December 31		$—		$—			($11	)

Gains (losses) on assets and liabilities measured on a nonrecurring basis included in earnings

The following table presents gains (losses) on assets and liabilities measured at fair value on a nonrecurring basis and recorded in earnings:



	Year Ended December 31,
(in millions)	2014			2013			2012
Impaired collateral-dependent loans		($101	)		($83	)		($101	)
MSRs	5			47			(12		)
Foreclosed assets	(3		)	(4		)	(6		)
Goodwill impairment ⁽¹⁾	—			(4,435		)	—

Fair value of assets and liabilities measured on a nonrecurring basis

The following tables present assets and liabilities measured at fair value on a nonrecurring basis:



	December 31, 2014
(in millions)	Total		Level 1		Level 2		Level 3
Impaired collateral-dependent loans		$102		$—		$102		$—
MSRs	166		—		—		166
Foreclosed assets	40		—		40		—



	December 31, 2013
(in millions)	Total		Level 1		Level 2		Level 3
Impaired collateral-dependent loans		$74		$—		$74		$—
MSRs	185		—		—		185
Foreclosed assets	49		—		49		—
Goodwill ⁽¹⁾	6,876		—		—		6,876

⁽¹⁾In the year ended December 31, 2013, Goodwill totaling $11.3 billion was written down to its implied fair value of $6.9 billion, resulting in an impairment charge of $4.4 billion.

Assets and liabilities measured at fair value

The following table is a summary of fair value for financial instruments not recorded at fair value in the Consolidated Financial Statements. The carrying amounts in the following table are recorded in the Consolidated Balance Sheets under the indicated captions:



	December 31, 2014
	Total				Level 1				Level 2				Level 3
(in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value
Financial Assets:
Loans and leases		$93,410		$93,674		$—		$—		$102		$102		$93,308		$93,572
Other loans held for sale	25		25		—		—		—		—		25		25
Securities held to maturity	5,148		5,193		—		—		5,148		5,193		—		—
Other investment securities	872		872		—		—		872		872		—		—
Financial Liabilities:
Deposits	95,707		95,710		—		—		95,707		95,710		—		—
Federal funds purchased and securities sold under agreements to repurchase	4,276		4,276		—		—		4,276		4,276		—		—
Other short-term borrowed funds	6,253		6,253		—		—		6,253		6,253		—		—
Long-term borrowed funds	4,642		4,706		—		—		4,642		4,706		—		—



	December 31, 2013
	Total				Level 1				Level 2				Level 3
(in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value
Financial Assets:
Loans and leases		$85,859		$85,724		$—		$—		$74		$74		$85,785		$85,650
Other loans held for sale	1,078		1,078		—		—		—		—		1,078		1,078
Securities held to maturity	4,315		4,257		—		—		4,315		4,257		—		—
Other investment securities	935		935		—		—		935		935		—		—
Financial Liabilities:
Deposits	86,903		86,907		—		—		86,903		86,907		—		—
Deposits held for sale	5,277		5,277		—		—		5,277		5,277		—		—
Federal funds purchased and securities sold under agreements to repurchase	4,791		4,791		—		—		4,791		4,791		—		—
Other short-term borrowed funds	2,251		2,249		—		—		2,251		2,249		—		—
Long-term borrowed funds	1,405		1,404		—		—		1,405		1,404		—		—

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References+ Details