Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2022

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, 2022 and December 31, 2021, and that were included in the Company’s Consolidated Statements of Condition at those dates:

	Fair Value Measurements at June 30, 2022
(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
Assets:
Mortgage-related Debt Securities    Available for Sale:
GSE certificates	$	—	$	1,050	$	—	$	1,050
GSE CMOs		—		1,416		—		1,416
Total mortgage-related debt securities	$	—	$	2,466	$	—	$	2,466
Other Debt Securities Available for Sale:
U. S. Treasury obligations	$	294	$	—	$	—	$	294
GSE debentures		—		1,502		—		1,502
Asset-backed securities		—		407		—		407
Municipal bonds		—		18		—		18
Corporate bonds		—		859		—		859
Foreign notes		—		25		—		25
Capital trust notes		—		93		—		93
Total other debt securities	$	294	$	2,904	$	—	$	3,198
Total debt securities available for sale	$	294	$	5,370	$	—	$	5,664
Equity securities:
Preferred stock	$	—	$	—	$	—	$	—
Mutual funds and common stock		—		14		—		14
Total equity securities	$	—	$	14	$	—	$	14
Total securities	$	294	$	5,384	$	—	$	5,678

	Fair Value Measurements at December 31, 2021
(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
Assets:
Mortgage-Related Debt Securities    Available for Sale:
GSE certificates	$	—	$	1,107	$	—	$	1,107
GSE CMOs		—		1,683		—		1,683
Total mortgage-related debt securities	$	—	$	2,790	$	—	$	2,790
Other Debt Securities Available    for Sale:
U.S. Treasury obligations	$	45	$	—	$	—	$	45
GSE debentures		—		1,480		—		1,480
Asset-backed securities		—		479		—		479
Municipal bonds		—		25		—		25
Corporate bonds		—		838		—		838
Foreign notes		—		26		—		26
Capital trust notes		—		97		—		97
Total other debt securities	$	45	$	2,945	$	—	$	2,990
Total debt securities available for sale	$	45	$	5,735	$	—	$	5,780
Equity securities:						—
Preferred stock	$	—	$	—	$	—	$	—
Mutual funds and common stock		—		16		—		16
Total equity securities	$	—	$	16	$	—	$	16
Total securities	$	45	$	5,751	$	—	$	5,796

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, 2022 and December 31, 2021, and that were included in the Company’s Consolidated Statements of Condition at those dates:

	Fair Value Measurements at June 30, 2022 Using
(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 loans (1)	$	—	$	—	$	20	$	20
Other assets(2)		—		—		37		37
Total	$	—	$	—	$	57	$	57

(1)Represents the fair value 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, 2021 Using
(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 loans (1)	$	—	$	—	$	32	$	32
Other assets (2)		—		—		32		32
Total	$	—	$	—	$	64	$	64

(1)Represents the fair value 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, 2022 and December 31, 2021:

		June 30, 2022
								Fair Value Measurement Using
(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, cash equivalents and due from banks	$		3,277	$		3,277	$		3,277		$		—		$	—
FHLB stock (1)			635			635			—				635			—
Loans and leases, net			48,321			45,794			—				—			45,794
Financial Liabilities:
Deposits	$		41,244	$		41,091	$		33,154	(2)	$		7,937	(3)	$	—
Borrowed funds			14,307			14,235			—				14,235			—

(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, 2021
					Fair Value Measurement Using
(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, cash equivalents and due from banks	$	2,211	$	2,211	$	2,211		$	—		$	—
FHLB stock (1)		734		734		—			734			—
Loans and leases, net		45,539		44,748		—			—			44,748
Financial Liabilities:
Deposits	$	35,059	$	35,051	$	26,635	(2)	$	8,416	(3)	$	—
Borrowed funds		16,562		17,169		—			17,169			—

(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.