FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2019

Summary of difference between aggregated fair value and unpaid principal balance of loans held for sale

The following table presents the difference between the aggregate fair value and the aggregate unpaid principal balance of LHFS measured at fair value:



	March 31, 2019						December 31, 2018
(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		$1,009		$1,009		$—		$967		$967		$—
Commercial and commercial real estate loans held for sale, at fair value	177		177		—		252		252		—

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, 2019:



(in millions)	Total		Level 1		Level 2		Level 3
Debt securities available for sale:
Mortgage-backed securities		$21,427		$—		$21,427		$—
State and political subdivisions	5		—		5		—
U.S. Treasury and other	72		72		—		—
Total debt securities available for sale	21,504		72		21,432		—
Loans held for sale, at fair value:
Residential loans held for sale	1,009		—		1,009		—
Commercial loans held for sale	177		—		177		—
Total loans held for sale, at fair value	1,186		—		1,186		—
Mortgage servicing rights	563		—		—		563
Derivative assets:
Interest rate contracts	443		—		443		—
Foreign exchange contracts	135		—		135		—
Other contracts	19		—		1		18
Total derivative assets	597		—		579		18
Equity securities, at fair value:
Money market mutual fund investments	198		198		—		—
Total equity securities, at fair value	198		198		—		—
Total assets		$24,048		$270		$23,197		$581
Derivative liabilities:
Interest rate contracts		$160		$—		$160		$—
Foreign exchange contracts	113		—		113		—
Other contracts	21		—		21		—
Total derivative liabilities	294		—		294		—
Total liabilities		$294		$—		$294		$—

The following table presents assets and liabilities measured at fair value, including gross derivative assets and liabilities on a recurring basis at December 31, 2018:



(in millions)	Total		Level 1		Level 2		Level 3
Debt securities available for sale:
Mortgage-backed securities		$19,866		$—		$19,866		$—
State and political subdivisions	5		—		5		—
U.S. Treasury and other	24		24		—		—
Total debt securities available for sale	19,895		24		19,871		—
Loans held for sale, at fair value:
Residential loans held for sale	967		—		967		—
Commercial loans held for sale	252		—		252		—
Total loans held for sale, at fair value	1,219		—		1,219		—
Mortgage servicing rights	600		—		—		600
Derivative assets:
Interest rate contracts	306		—		306		—
Foreign exchange contracts	129		—		129		—
Other contracts	14		—		14		—
Total derivative assets	449		—		449		—
Equity securities, at fair value:
Money market mutual fund investments	181		181		—		—
Total equity securities, at fair value	181		181		—		—
Total assets		$22,344		$205		$21,539		$600
Derivative liabilities:
Interest rate contracts		$277		$—		$277		$—
Foreign exchange contracts	113		—		113		—
Other contracts	25		—		25		—
Total derivative liabilities	415		—		415		—
Total liabilities		$415		$—		$415		$—

Asses measured at fair value on recurring basis and classified as Level 3

The following tables present a rollforward of the balance sheet amounts for assets measured at fair value on a recurring basis and classified as Level 3 for the three months ended March 31, 2019. There were no assets measured at fair value on a recurring basis and classified as Level 3 for the three months ended March 31, 2018.



	For the Three Months Ended March 31,
(in millions)	Mortgage Servicing Rights			Other Derivative Contracts
Balance at January 1, 2019		$600			$—
Amount capitalized	35			—
Change in unpaid principal balance during the period ⁽¹⁾	(26		)	—
Change in fair value during the period ⁽²⁾	(46		)	—
Transfers from Level 2 to Level 3⁽³⁾	—			18
Balance at March 31, 2019		$563			$18

⁽¹⁾ Represents changes in value of the MSRs due to i) passage of time including the impact from both regularly scheduled loan principal payments and partial

paydowns, and ii) loans that paid off during the period.

⁽²⁾ Represents changes in value primarily due to market driven changes in interest rates and prepayment speeds.

⁽³⁾Reflects changes in the significance of unobservable inputs on derivative contracts associated with mortgage origination activities.

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:



	Three Months Ended March 31,
(in millions)	2019			2018
Impaired collateral-dependent loans		($4	)		($2	)
MSRs	—			3
Foreclosed assets	—			(1		)
Leased assets	(3		)	—

Fair value of assets and liabilities measured on a nonrecurring basis

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



	March 31, 2019								December 31, 2018
(in millions)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Impaired collateral-dependent loans		$371		$—		$371		$—		$338		$—		$338		$—
MSRs	224		—		—		224		243		—		—		243
Foreclosed assets	29		—		29		—		29		—		29		—
Leased assets	91		—		91		—		92		—		92		—

Assets and liabilities measured at fair value

The following table presents the estimated fair value for financial instruments not recorded at fair value in the unaudited interim Consolidated Financial Statements. The carrying amounts are recorded in the Consolidated Balance Sheets under the indicated captions:



	March 31, 2019
	Total				Level 1				Level 2				Level 3
(in millions)	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial assets:
Securities held to maturity		$3,345		$3,267		$—		$—		$3,345		$3,267		$—		$—
Equity securities, at cost	604		604		—		—		604		604		—		—
Other loans held for sale	66		66		—		—		—		—		66		66
Loans and leases	117,615		117,862		—		—		371		371		117,244		117,491
Financial liabilities:
Deposits	123,916		123,875		—		—		123,916		123,875		—		—
Federal funds purchased and securities sold under agreements to repurchase	668		668		—		—		668		668		—		—
Other short-term borrowed funds	11		11		—		—		11		11		—		—
Long-term borrowed funds	11,725		11,767		—		—		11,725		11,767		—		—



	December 31, 2018
	Total				Level 1				Level 2				Level 3
(in millions)	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial assets:
Securities held to maturity		$4,165		$4,041		$—		$—		$4,165		$4,041		$—		$—
Equity securities, at cost	834		834		—		—		834		834		—		—
Other loans held for sale	101		101		—		—		—		—		101		101
Loans and leases	116,660		116,627		—		—		338		338		116,322		116,289
Financial liabilities:
Deposits	119,575		119,503		—		—		119,575		119,503		—		—
Federal funds purchased and securities sold under agreements to repurchase	1,156		1,156		—		—		1,156		1,156		—		—
Other short-term borrowed funds	161		161		—		—		161		161		—		—
Long-term borrowed funds	15,925		15,877		—		—		15,925		15,877		—		—