Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present assets and liabilities that were measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020, and that were included in the Company’s Consolidated Statements of Condition at those dates:

	Fair Value Measurements at June 30, 2021
(dollars in millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Netting Adjustments		Total Fair Value
Assets:
Mortgage-Related Debt Securities Available for Sale:
GSE certificates	$	—	$	1,060	$	—	$	—	$	1,060
GSE CMOs		—		1,933		—		—		1,933
Total mortgage-related debt securities	$	—	$	2,993	$	—	$	—	$	2,993
Other Debt Securities Available for Sale:
U. S. Treasury obligations	$	65	$	—	$	—	$	—	$	65
GSE debentures		—		1,474		—		—		1,474
Asset-backed securities		—		509		—		—		509
Municipal bonds		—		25		—		—		25
Corporate bonds		—		890		—		—		890
Foreign notes		—		26						26
Capital trust notes		—		95		—		—		95
Total other debt securities	$	65	$	3,019	$	—	$	—	$	3,084
Total debt securities available for sale	$	65	$	6,012	$	—	$	—	$	6,077
Equity securities:
Mutual funds		—		16		—		—		16
Total equity securities	$	—	$	16	$	—	$	—	$	16
Total securities	$	65	$	6,028	$	—	$	—	$	6,093

	Fair Value Measurements at December 31, 2020
(dollars in millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Netting Adjustments		Total Fair Value
Assets:
Mortgage-Related Debt Securities Available for Sale:
GSE certificates	$	—	$	1,209	$	—	$	—	$	1,209
GSE CMOs		—		1,829		—		—		1,829
Total mortgage-related debt securities	$	—	$	3,038	$	—	$	—	$	3,038
Other Debt Securities Available for Sale:
U.S. Treasury obligations	$	65	$	—	$	—	$	—	$	65
GSE debentures		—		1,158		—		—		1,158
Asset-backed securities		—		526		—		—		526
Municipal bonds		—		27		—		—		27
Corporate bonds		—		883		—		—		883
Foreign notes		—		26						26
Capital trust notes		—		91		—		—		91
Total other debt securities	$	65	$	2,711	$	—	$	—	$	2,776
Total debt securities available for sale	$	65	$	5,749	$	—	$	—	$	5,814
Equity securities:
Preferred stock	$	15	$	—	$	—	$	—	$	15
Mutual funds		—		16		—		—		16
Total equity securities	$	15	$	16	$	—	$	—	$	31
Total securities	$	80	$	5,765	$	—	$	—	$	5,845

Summary of Carrying Values, Estimated Fair Values and Fair Value Measurement Levels of Financial Instruments

The following tables present assets and liabilities that were measured at fair value on a non-recurring basis as of June 30, 2021 and December 31, 2020, and that were included in the Company’s Consolidated Statements of Condition at those dates:

	Fair Value Measurements at June 30, 2021 Using
(dollars in millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Certain nonaccrual loans (1)	$	—	$	—	$	31	$	31
Other assets(2)		—		—		11		11
Total	$	—	$	—	$	42	$	42

(1) Represents the fair value of impaired loans, based on the value of the collateral.

(2) Represents the fair value of repossessed assets, based on the appraised value of the collateral subsequent to its initial classification as repossessed assets and equity investments without readily determinable fair values. These equity investments are classified as Level 3 due to the infrequency of the observable prices and/or the restrictions on the shares.

	Fair Value Measurements at December 31, 2020 Using
(dollars in millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Certain nonaccrual loans (1)	$	—	$	—	$	41	$	41
Other assets (2)		—		—		6		6
Total	$	—	$	—	$	47	$	47

(1) Represents the fair value of impaired loans, based on the value of the collateral.

(2) Represents the fair value of repossessed assets, based on the appraised value of the collateral subsequent to its initial classification as repossessed assets and equity investments without readily determinable fair values. These equity investments are classified as Level 3 due to the infrequency of the observable prices and/or the restrictions on the shares.

Assets and Liabilities Measured at Fair Value on Non-Recurring Basis

The following tables summarize the carrying values, estimated fair values, and fair value measurement levels of financial instruments that were not carried at fair value on the Company’s Consolidated Statements of Condition at June 30, 2021 and December 31, 2020:

	June 30, 2021
					Fair Value Measurement Using
(dollars in millions)	Carrying Value		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and cash equivalents	$	2,086	$	2,086	$	2,086		$	—		$	—
FHLB stock (1)		686		686		—			686			—
Loans, net		43,373		42,913		—			—			42,913
Financial Liabilities:
Deposits	$	34,177	$	34,186	$	25,228	(2)	$	8,958	(3)	$	—
Borrowed funds		15,459		16,243		—			16,243			—

(1) Carrying value and estimated fair value are at cost.

(2) Interest-bearing checking and money market accounts, savings accounts, and non-interest-bearing accounts.

(3) Certificates of deposit.

	December 31, 2020
					Fair Value Measurement Using
(dollars in millions)	Carrying Value		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and cash equivalents	$	1,948	$	1,948	$	1,948		$	—		$	—
FHLB stock (1)		714		714		—			714			—
Loans, net		42,807		42,376		—		$	—			42,376
Financial Liabilities:
Deposits	$	32,437	$	32,466	$	22,106	(2)	$	10,360	(3)	$	—
Borrowed funds		16,084		16,794		—			16,794			—

(1) Carrying value and estimated fair value are at cost.

(2) Interest-bearing checking and money market accounts, savings accounts, and non-interest-bearing accounts.

(3) Certificates of deposit.