FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2015

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:

March 31, 2015

December 31, 2014

(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

$265

$258

$213

$206

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:

March 31, 2015

December 31, 2014

(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

Commercial and commercial real estate loans held for sale, at fair value

$57

$—

$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 March 31, 2015:



(in millions)	Total		Level 1		Level 2		Level 3
Securities available for sale:
Mortgage-backed securities		$18,996		$—		$18,996		$—
State and political subdivisions	10		—		10		—
Equity securities	20		2		18		—
U.S. Treasury	15		15		—		—
Total securities available for sale	19,041		17		19,024		—
Residential loans held for sale	265		—		265		—
Commercial loans held for sale	57		—		57		—
Total loans held for sale	322		—		322		—
Derivative assets:
Interest rate swaps	744		—		744		—
Foreign exchange contracts	253		—		253		—
Other contracts	9		—		9		—
Total derivative assets	1,006		—		1,006		—
Venture capital investments and other investments	6		—		5		1
Total assets		$20,375		$17		$20,357		$1
Derivative liabilities:
Interest rate swaps		$624		$—		$624		$—
Foreign exchange contracts	247		—		247		—
Other contracts	9		—		9		—
Total derivative liabilities	880		—		880		—
Total liabilities		$880		$—		$880		$—

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



	Three Months Ended March 31,
(in millions)	2015			2014
Balance as of January 1		$5			$5
Purchases, issuances, sales and settlements:
Purchases	1			—
Sales	—			—
Settlements	—			—
Other net gains	—			1
Transfers from Level 3 to Level 2	(5		)	—
Balance as of period end		$1			$6
Net unrealized gain included in net income for the year relating to assets held at period end		$1			$—

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

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



	Three Months Ended March 31,
(in millions)	2015			2014
Impaired collateral-dependent loans		($3	)		($75	)
MSRs	(1		)	(4		)
Foreclosed assets	(1		)	(1		)

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:



	March 31, 2015
(in millions)	Total		Level 1		Level 2		Level 3
Impaired collateral-dependent loans		$87		$—		$87		$—
MSRs	163		—		—		163
Foreclosed assets	36		—		36		—



	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		—

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 unaudited interim Consolidated Financial Statements. The carrying amounts in the following table are recorded in the Consolidated Balance Sheets under the indicated captions:



	March 31, 2015
	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:
Securities held to maturity		$5,178		$5,281		$—		$—		$5,178		$5,281		$—		$—
Other investment securities	867		867		—		—		867		867		—		—
Other loans held for sale	54		54		—		—		—		—		54		54
Loans and leases	94,494		94,892		—		—		87		87		94,407		94,805
Financial Liabilities:
Deposits	98,990		99,005		—		—		98,990		99,005		—		—
Federal funds purchased and securities sold under agreements to repurchase	4,421		4,421		—		—		4,421		4,421		—		—
Other short-term borrowed funds	7,004		7,004		—		—		7,004		7,004		—		—
Long-term borrowed funds	3,904		4,006		—		—		3,904		4,006		—		—



	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:
Securities held to maturity		$5,148		$5,193		$—		$—		$5,148		$5,193		$—		$—
Other investment securities	872		872		—		—		872		872		—		—
Other loans held for sale	25		25		—		—		—		—		25		25
Loans and leases	93,410		93,674		—		—		102		102		93,308		93,572
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		—		—

- 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