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FAIR VALUE MEASUREMENTS (Tables)
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
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:
December 31, 2023December 31, 2022
(dollars in millions)Aggregate Fair ValueAggregate Unpaid PrincipalAggregate Fair Value Greater (Less) Than Aggregate Unpaid PrincipalAggregate Fair ValueAggregate Unpaid PrincipalAggregate Fair Value Greater (Less) Than Aggregate Unpaid Principal
Residential mortgage LHFS, at fair value
$614 $593 $21 $666 $656 $10 
Commercial and industrial, and commercial real estate LHFS, at fair value
62 69 (7)108 127 (19)
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, 2023:
(dollars in millions)TotalLevel 1Level 2Level 3
Debt securities available for sale:
Mortgage-backed securities$24,732 $— $24,732 $— 
Collateralized loan obligations664 — 664 — 
State and political subdivisions1 — 1 — 
U.S. Treasury and other4,380 4,380 — — 
Total debt securities available for sale29,777 4,380 25,397 — 
Loans held for sale, at fair value:
Residential loans held for sale614 — 614 — 
Commercial loans held for sale62 — 62 — 
Total loans held for sale, at fair value676 — 676 — 
Mortgage servicing rights1,552 — — 1,552 
Derivative assets:
Interest rate contracts464 — 464 — 
Foreign exchange contracts434 — 434 — 
Commodities contracts685 — 685 — 
TBA contracts3 — 3 — 
Other contracts7 — — 7 
Total derivative assets1,593 — 1,586 7 
Equity securities, at fair value(1)
115 115 — — 
Total assets$33,713 $4,495 $27,659 $1,559 
Derivative liabilities:
Interest rate contracts$1,149 $— $1,149 $— 
Foreign exchange contracts378 — 378 — 
Commodities contracts640 — 640 — 
TBA contracts16 — 16 — 
Other contracts— — — — 
Total derivative liabilities2,183 — 2,183 — 
Total liabilities$2,183 $— $2,183 $— 
(1) Excludes investments of $58 million included in other assets in the Consolidated Balance Sheets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient. These investments include capital contributions to private investment funds and have unfunded capital commitments of $28 million at December 31, 2023, which may be called at any time during prescribed time periods. The credit exposure is generally limited to the carrying amount of investments made and unfunded capital commitments.
The following table presents assets and liabilities measured at fair value, including gross derivative assets and liabilities, on a recurring basis at December 31, 2022:
(dollars in millions)TotalLevel 1Level 2Level 3
Debt securities available for sale:
Mortgage-backed securities$19,313 $— $19,313 $— 
Collateralized loan obligations1,206 — 1,206 — 
State and political subdivisions2 — 2 — 
U.S. Treasury and other3,486 3,486 — — 
Total debt securities available for sale24,007 3,486 20,521 — 
Loans held for sale, at fair value:
Residential loans held for sale666 — 666 — 
Commercial loans held for sale108 — 108 — 
Total loans held for sale, at fair value774 — 774 — 
Mortgage servicing rights1,530 — — 1,530 
Derivative assets:
Interest rate contracts347 — 347 — 
Foreign exchange contracts527 — 527 — 
Commodities contracts953 — 953 — 
TBA contracts7 — 7 — 
Other contracts5 — — 5 
Total derivative assets1,839 — 1,834 5 
Equity securities, at fair value(1)
110 110 — — 
Total assets$28,260 $3,596 $23,129 $1,535 
Derivative liabilities:
Interest rate contracts$1,632 $— $1,632 $— 
Foreign exchange contracts519 — 519 — 
Commodities contracts942 — 942 — 
TBA contracts14 — 14 — 
Other contracts4 — — 4 
Total derivative liabilities3,111 — 3,107 4 
Total liabilities$3,111 $— $3,107 $4 
(1) Excludes investments of $43 million included in other assets in the Consolidated Balance Sheets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient. These investments include capital contributions to private investment funds and have unfunded capital commitments of $42 million at December 31, 2022, which may be called at any time during prescribed time periods. The credit exposure is generally limited to the carrying amount of investments made and unfunded capital commitments.
Assets measured at fair value on recurring basis
The following table presents a roll forward of the balance sheet amounts for assets measured at fair value on a recurring basis and classified as Level 3:
For the Year Ended December 31,
20232022
(dollars in millions)Mortgage Servicing RightsOther Derivative ContractsMortgage Servicing RightsOther Derivative Contracts
Beginning balance$1,530 $1 $1,029 $38 
Issuances127 64 279 93 
Acquisitions(1)
— — 16 — 
Settlements(2)
(166)(24)(137)154 
Changes in fair value during the period recognized in earnings(3)
61 (34)343 (284)
Ending balance$1,552 $7 $1,530 $1 
(1) Represents MSRs acquired as part of the Investors acquisition.
(2) For MSRs, 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. For other derivative contracts, represents the closeout of interest rate lock commitments.
(3) Represents changes in value primarily driven by market conditions. These changes are recorded in mortgage banking fees in the Consolidated Statements of Operations.
The following table presents quantitative information about the Company’s Level 3 assets, including the range and weighted-average of the significant unobservable inputs used to fair value these assets, as well as valuation techniques used.
As of December 31, 2023As of December 31, 2022
Valuation TechniqueUnobservable InputRange (Weighted Average)Range (Weighted Average)
Mortgage servicing rightsDiscounted Cash FlowConstant prepayment rate
6.70-14.55% CPR (7.23% CPR)
6.19-17.80% CPR (6.80% CPR)
Option adjusted spread
398-1,058 bps (630 bps)
398-1,058 bps (629 bps)
Other derivative contractsInternal ModelPull through rate
24.90-99.70% (80.34%)
28.62-99.90% (83.71%)
MSR value
(8.90)-141.24 bps (88.04 bps)
(1.60)-144.84 bps (95.80 bps)
Gains (losses) on assets and liabilities measured on a nonrecurring basis included in earnings
The following table presents losses on assets measured at fair value on a nonrecurring basis and recorded in earnings:
Year Ended December 31,
(dollars in millions)202320222021
Collateral-dependent loans ($138)($4)($27)
Fair value of assets and liabilities measured on a nonrecurring basis
The following table presents assets measured at fair value on a nonrecurring basis:
December 31, 2023December 31, 2022
(dollars in millions)TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3
Collateral-dependent loans $789 $— $789 $— $582 $— $582 $— 
Assets and liabilities measured at fair value
The following tables present the estimated fair value for financial instruments not recorded at fair value in the Consolidated Financial Statements. The carrying amounts are recorded in the Consolidated Balance Sheets under the indicated captions:
December 31, 2023
TotalLevel 1Level 2Level 3
(dollars in millions)Carrying ValueEstimated Fair ValueCarrying ValueEstimated Fair ValueCarrying ValueEstimated Fair ValueCarrying ValueEstimated Fair Value
Financial assets:
Debt securities held to maturity$9,184 $8,350 $— $— $8,696 $7,887 $488 $463 
Other loans held for sale103 103 — — — — 103 103 
Net loans and leases(1)
143,861 140,504 — — 789 789 143,072 139,715 
Other assets869 869 — — 851 851 18 18 
Financial liabilities:
Deposits177,342 177,096 — — 177,342 177,096 — — 
Short-term borrowed funds505 505 — — 505 505 — — 
Long-term borrowed funds13,467 13,012 — — 13,467 13,012 — — 
December 31, 2022
TotalLevel 1Level 2Level 3
(dollars in millions)Carrying ValueEstimated Fair ValueCarrying ValueEstimated Fair ValueCarrying ValueEstimated Fair ValueCarrying ValueEstimated Fair Value
Financial assets:
Debt securities held to maturity$9,834 $9,042 $— $— $9,253 $8,506 $581 $536 
Other loans held for sale208 208 — — — — 208 208 
Net loans and leases(1)
154,679 151,601 — — 582 582 154,097 151,019 
Other assets1,058 1,058 — — 1,038 1,038 20 20 
Financial liabilities:
Deposits180,724 180,566 — — 180,724 180,566 — — 
Short-term borrowed funds3 3 — — 3 3 — — 
Long-term borrowed funds15,887 15,469 — — 15,887 15,469 — — 
(1) During 2023, the Company revised its presentation of the loans and leases portfolio from a gross to net basis to better align with its presentation on the Consolidated Balance Sheets. The prior period presentation was revised to conform to the new presentation.