Fair Value Disclosures (Tables)

9 Months Ended

Sep. 30, 2018

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present fair value information for assets and liabilities measured at fair value on a recurring basis:



September 30, 2018 (Dollars in millions)	Total		Level 1		Level 2		Level 3
Assets:
AFS securities:
U.S. Treasury	$	2,378	$	—	$	2,378	$	—
GSE	198		—		198		—
Agency MBS	20,372		—		20,372		—
States and political subdivisions	771		—		771		—
Non-agency MBS	529		—		122		407
Other	38		—		38		—
Total AFS securities	24,286		—		23,879		407
LHFS	1,022		—		1,022		—
MSRs	1,179		—		—		1,179
Other assets:
Trading and equity securities	1,136		464		672		—
Derivative assets	186		—		183		3
Private equity investments	427		—		—		427
Total assets	$	28,236	$	464	$	25,756	$	2,016
Liabilities:
Derivative liabilities	$	439	$	—	$	435	$	4
Securities sold short	145		—		145		—
Total liabilities	$	584	$	—	$	580	$	4

December 31, 2017	Total		Level 1		Level 2		Level 3
Assets:
AFS securities:
U.S. Treasury	$	2,291	$	—	$	2,291	$	—
GSE	179		—		179		—
Agency MBS	20,101		—		20,101		—
States and political subdivisions	1,392		—		1,392		—
Non-agency MBS	576		—		144		432
Other	8		6		2		—
Total AFS securities	24,547		6		24,109		432
LHFS	1,099		—		1,099		—
MSRs	1,056		—		—		1,056
Other assets:
Trading and equity securities	633		363		270		—
Derivative assets	443		—		437		6
Private equity investments	404		—		—		404
Total assets	$	28,182	$	369	$	25,915	$	1,898
Liabilities:
Derivative liabilities	$	714	$	—	$	711	$	3
Securities sold short	120		—		120		—
Total liabilities	$	834	$	—	$	831	$	3

Rollforward of Level 3 Assets and Liabilities

Activity for Level 3 assets and liabilities is summarized below:



Three Months Ended September 30, 2018 and 2017 (Dollars in millions)	Non-agency MBS			MSRs			Net Derivatives			Private Equity Investments
Balance at July 1, 2017	$	474		$	1,052		$	3		$	394
Total realized and unrealized gains (losses):
Included in earnings	8			4			11			21
Included in unrealized net holding gains (losses) in OCI	(7		)	—			—			—
Purchases	—			—			—			9
Issuances	—			30			15			—
Sales	—			—			—			(11		)
Settlements	(18		)	(42		)	(24		)	—
Balance at September 30, 2017	$	457		$	1,044		$	5		$	413
Balance at July 1, 2018	$	425		$	1,143		$	4		$	399
Total realized and unrealized gains (losses):
Included in earnings	2			36			6			35
Included in unrealized net holding gains (losses) in OCI	(7		)	—			—			—
Purchases	—			—			—			18
Issuances	—			42			5			—
Sales	—			—			—			(7		)
Settlements	(13		)	(42		)	(16		)	(18		)
Balance at September 30, 2018	$	407		$	1,179		$	(1	)	$	427
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at September 30, 2018	$	1		$	36		$	(1	)	$	34

Nine Months Ended September 30, 2018 and 2017 (Dollars in millions)	Non-agency MBS			MSRs			Net Derivatives			Private Equity Investments
Balance at January 1, 2017	$	507		$	1,052		$	(13	)	$	362
Total realized and unrealized gains (losses):
Included in earnings	31			24			30			26
Included in unrealized net holding gains (losses) in OCI	(27		)	—			—			—
Purchases	—			—			—			84
Issuances	—			93			39			—
Sales	—			—			—			(41		)
Settlements	(54		)	(125		)	(51		)	(5		)
Transfers out of Level 3	—			—			—			(13		)
Balance at September 30, 2017	$	457		$	1,044		$	5		$	413
Balance at January 1, 2018	$	432		1,056			$	3		$	404
Total realized and unrealized gains (losses):
Included in earnings	8			127			7			46
Included in unrealized net holding gains (losses) in OCI	7			—			—			—
Purchases	—			—			—			45
Issuances	—			125			11			—
Sales	—			—			—			(31		)
Settlements	(40		)	(129		)	(22		)	(37		)
Balance at September 30, 2018	$	407		$	1,179		$	(1	)	$	427
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at September 30, 2018	$	7		$	127		$	(1	)	$	43
Primary income statement location of realized gains (losses) included in earnings	Interest income			Mortgage banking income			Mortgage banking income			Other income

Fair Value and UPB of LHFS

The following table details the fair value and UPB of LHFS that were elected to be carried at fair value:



	September 30, 2018						December 31, 2017
(Dollars in millions)	Fair Value		UPB		Difference		Fair Value		UPB		Difference
LHFS at fair value	$	1,022	$	1,015	$	7	$	1,099	$	1,084	$	15

Assets Measured at Fair Value on a Nonrecurring Basis

The following table provides information about certain assets measured at fair value on a nonrecurring basis, which are primarily collateral dependent and may be subject to liquidity adjustments. The carrying values represent end of period values, which approximate the fair value measurements that occurred on the various measurement dates throughout the period. The valuation adjustments represent the amounts recorded during the period regardless of whether the asset is still held at period end. These assets are considered to be Level 3 assets (excludes PCI).



	2018					2017
As of / For The Nine Months Ended September 30, (Dollars in millions)	Carrying Value		Valuation Adjustments			Carrying Value		Valuation Adjustments
Impaired loans	$	185	$	(31	)	$	198	$	(18	)
Foreclosed real estate	39		(171		)	46		(192		)

Carrying Amounts and Fair Value of Financial Assets and Liabilities Not Recorded at Fair Value

Financial assets and liabilities not recorded at fair value are summarized below:



		September 30, 2018				December 31, 2017
(Dollars in millions)	Fair Value Hierarchy	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
HTM securities	Level 2	$	21,082	$	20,263	$	23,027	$	22,837
Loans and leases HFI, net of ALLL	Level 3	145,152		143,151		142,211		141,664
Financial liabilities:
Time deposits	Level 2	12,723		12,815		13,170		13,266
Long-term debt	Level 2	23,236		23,431		23,648		23,885

Selected Information Pertaining to Off-Balance Sheet Financial Instruments

The following is a summary of selected information pertaining to off-balance sheet financial instruments:



	September 30, 2018				December 31, 2017
(Dollars in millions)	Notional/Contract Amount		Fair Value		Notional/Contract Amount		Fair Value
Commitments to extend, originate or purchase credit	$	72,059	$	275	$	67,860	$	259
Residential mortgage loans sold with recourse	436		4		490		5
Other loans sold with recourse	4,635		6		4,153		5
Letters of credit	2,406		19		2,466		21