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Fair Value
6 Months Ended
Jun. 30, 2017
Fair Value Disclosures [Abstract]  
Fair Value
Fair Value
Fair-Value Measurements:
We carry trading account assets, AFS investment securities and various types of derivative financial instruments at fair value in our consolidated statement of condition on a recurring basis. Changes in the fair values of these financial assets and liabilities are recorded either as components of our consolidated statement of income or as components of AOCI within shareholders' equity in our consolidated statement of condition.
We measure fair value for the above-described financial assets and liabilities in conformity with U.S. GAAP that governs the measurement of the fair value of financial instruments. Management believes that its valuation techniques and underlying assumptions used to measure fair value conform to the provisions of U.S. GAAP. We categorize the financial assets and liabilities that we carry at fair value based on a prescribed three-level valuation hierarchy. For information about our valuation techniques for financial assets and financial liabilities measured at fair value and the fair value hierarchy, refer to pages 135 to 142 in Note 2 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2016 Form 10-K.
The following tables present information with respect to our financial assets and liabilities carried at fair value in our consolidated statement of condition on a recurring basis as of the dates indicated. During the six months ended June 30, 2017, approximately $9 million of assets were transferred between levels 1 and 2. No transfers of financial assets or liabilities between levels 1 and 2 occurred during the year ended December 31, 2016.

 
Fair-Value Measurements on a Recurring Basis
 
as of June 30, 2017
(In millions)
Quoted Market
Prices in Active
Markets
(Level 1)
 
Pricing Methods
with Significant
Observable
Market Inputs
(Level 2)
 
Pricing Methods
with Significant
Unobservable
Market Inputs
(Level 3)
 
Impact of Netting(1)
 
Total Net
Carrying Value
in Consolidated
Statement of
Condition
Assets:
 
 
 
 
 
 
 
 
 
Trading account assets:
 
 
 
 
 
 
 
 
 
U.S. government securities
$
39

 
$
—

 
$
—

 
 
 
$
39

Non-U.S. government securities
383

 
114

 
—

 
 
 
497

Other
—

 
360

 
—

 
 
 
360

Total trading account assets
422

 
474

 
—

 
 
 
896

AFS Investment securities:
 
 
 
 
 
 
 
 
 
U.S. Treasury and federal agencies:
 
 
 
 
 
 
 
 
 
Direct obligations
231

 
402

 
—

 
 
 
633

Mortgage-backed securities
—

 
11,414

 
—

 
 
 
11,414

Asset-backed securities:
 
 
 
 
 
 
 
 
 
Student loans
—

 
5,887

 
—

 
 
 
5,887

Credit cards
—

 
1,556

 
—

 
 
 
1,556

Sub-prime
—

 
243

 
—

 
 
 
243

Other(2)
—

 
209

 
951

 
 
 
1,160

Total asset-backed securities
—

 
7,895

 
951

 

 
8,846

Non-U.S. debt securities:
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
—

 
6,962

 
—

 
 
 
6,962

Asset-backed securities
—

 
2,828

 
63

 
 
 
2,891

Government securities
—

 
6,600

 
—

 
 
 
6,600

Other(3)
—

 
6,002

 
274

 
 
 
6,276

Total non-U.S. debt securities
—

 
22,392

 
337

 
 
 
22,729

State and political subdivisions
—

 
10,000

 
38

 
 
 
10,038

Collateralized mortgage obligations
—

 
2,443

 
—

 
 
 
2,443

Other U.S. debt securities
—

 
2,780

 
19

 
 
 
2,799

U.S. equity securities
—

 
45

 
—

 
 
 
45

Non-U.S. equity securities
—

 
1

 
—

 
 
 
1

U.S. money-market mutual funds
—

 
77

 
—

 
 
 
77

Total investment securities available-for-sale
231

 
57,449

 
1,345

 

 
59,025

Other assets:
 
 
 
 
 
 
 
 
 
Derivative instruments:
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
—

 
13,366

 
5

 
$
(9,243
)
 
4,128

Total derivative instruments
—

 
13,366

 
5

 
(9,243
)
 
4,128

Other
56

 
—

 
—

 
—

 
56

Total assets carried at fair value
$
709

 
$
71,289

 
$
1,350

 
$
(9,243
)
 
$
64,105

Liabilities:
 
 
 
 
 
 
 
 
 
Accrued expenses and other liabilities:
 
 
 
 
 
 
 
 
 
Derivative instruments:
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
$
—

 
$
13,309

 
$
3

 
$
(7,337
)
 
$
5,975

Interest-rate contracts
15

 
109

 
—

 
(2
)
 
122

Other derivative contracts
—

 
356

 
—

 
—

 
356

Total derivative instruments
15

 
13,774

 
3

 
(7,339
)
 
6,453

Other
56

 
—

 
—

 
—

 
56

Total liabilities carried at fair value
$
71

 
$
13,774

 
$
3

 
$
(7,339
)
 
$
6,509

 
 
 
 
(1) Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between State Street and the counterparty. Netting also reflects asset and liability reductions of $3,097 million and $1,193 million, respectively, for cash collateral received from and provided to derivative counterparties.
(2) As of June 30, 2017, the fair value of other asset-backed securities was primarily composed of $1,160 million of collateralized loan obligations.
(3) As of June 30, 2017, the fair value of other non-U.S. debt securities was primarily composed of $3,968 million of covered bonds and $1,264 million of corporate bonds.
 
Fair-Value Measurements on a Recurring Basis
 
as of December 31, 2016
(In millions)
Quoted Market
Prices in Active
Markets
(Level 1)
 
Pricing Methods
with Significant
Observable
Market Inputs
(Level 2)
 
Pricing Methods
with Significant
Unobservable
Market Inputs
(Level 3)
 
Impact of Netting(1)
 
Total Net
Carrying Value
in Consolidated
Statement of
Condition
Assets:
 
 
 
 
 
 
 
 
 
Trading account assets:
 
 
 
 
 
 
 
 
 
U.S. government securities
$
30

 
$
—

 
$
—

 
 
 
$
30

Non-U.S. government securities
495

 
174

 
—

 
 
 
669

Other
—

 
325

 
—

 
 
 
325

Total trading account assets
525

 
499

 
—

 
 
 
1,024

AFS Investment securities:
 
 
 
 
 
 
 
 
 
U.S. Treasury and federal agencies:
 
 
 
 
 
 
 
 
 
Direct obligations
3,824

 
439

 
—

 
 
 
4,263

Mortgage-backed securities
—

 
13,257

 
—

 
 
 
13,257

Asset-backed securities:
 
 
 
 
 
 
 
 
 
Student loans
—

 
5,499

 
97

 
 
 
5,596

Credit cards
—

 
1,351

 
—

 
 
 
1,351

Sub-prime
—

 
272

 
—

 
 
 
272

Other(2)
—

 
—

 
905

 
 
 
905

Total asset-backed securities
—

 
7,122

 
1,002

 
 
 
8,124

Non-U.S. debt securities:
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
—

 
6,535

 
—

 
 
 
6,535

Asset-backed securities
—

 
2,484

 
32

 
 
 
2,516

Government securities
—

 
5,836

 
—

 
 
 
5,836

Other(3)
—

 
5,365

 
248

 
 
 
5,613

Total non-U.S. debt securities
—

 
20,220

 
280

 
 
 
20,500

State and political subdivisions
—

 
10,283

 
39

 
 
 
10,322

Collateralized mortgage obligations
—

 
2,577

 
16

 
 
 
2,593

Other U.S. debt securities
—

 
2,469

 
—

 
 
 
2,469

U.S. equity securities
—

 
42

 
—

 
 
 
42

Non-U.S. equity securities
—

 
3

 
—

 
 
 
3

U.S. money-market mutual funds
—

 
409

 
—

 
 
 
409

Non-U.S. money-market mutual funds
—

 
16

 
—

 
 
 
16

Total investment securities available-for-sale
3,824

 
56,837

 
1,337

 
 
 
61,998

Other assets:
 
 
 
 
 
 
 
 
 
Derivatives instruments:
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
—

 
16,476

 
8

 
$
(9,163
)
 
7,321

Interest-rate contracts
—

 
68

 
—

 
(68
)
 
—

Total derivative instruments
—

 
16,544

 
8

 
(9,231
)
 
7,321

Total assets carried at fair value
$
4,349

 
$
73,880

 
$
1,345

 
$
(9,231
)
 
$
70,343

Liabilities:
 
 
 
 
 
 
 
 
 
Accrued expenses and other liabilities:
 
 
 
 
 
 
 
 
 
Derivative instruments:
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
$
—

 
$
15,948

 
$
8

 
$
(10,456
)
 
$
5,500

Interest-rate contracts
—

 
348

 
—

 
(226
)
 
122

Other derivative contracts
—

 
380

 
—

 
—

 
380

Total derivative instruments
—

 
16,676

 
8

 
(10,682
)
 
6,002

Total liabilities carried at fair value
$
—

 
$
16,676

 
$
8

 
$
(10,682
)
 
$
6,002

 
 
 
 
(1) Represents counterparty netting against level 2 financial assets and liabilities where a legally enforceable master netting agreement exists between State Street and the counterparty. Netting also reflects asset and liability reductions of $906 million and $2,356 million, respectively, for cash collateral received from and provided to derivative counterparties.
(2) As of December 31, 2016, the fair value of other asset-backed securities was primarily composed of $905 million of collateralized loan obligations.
(3) As of December 31, 2016, the fair value of other non-U.S. debt securities was primarily composed of $3,769 million of covered bonds and $988 million of corporate bonds.
The following tables present activity related to our level 3 financial assets during the three and six months ended June 30, 2017 and 2016, respectively. Transfers into and out of level 3 are reported as of the beginning of the period presented. During the three and six months ended June 30, 2017 and 2016, transfers out of level 3 were mainly related to certain mortgage- and asset-backed securities, including non-U.S. debt securities, for which fair value was measured using prices for which observable market information became available.
 
Fair Value Measurements Using Significant Unobservable Inputs
 
Three Months Ended June 30, 2017
 
Fair Value  as of
March 31, 2017
 
Total Realized and
Unrealized Gains (Losses)
 
Purchases
 
Settlements
 
Transfers into Level 3
 
Transfers out of Level 3
 
Fair Value as of
June 30, 2017
 
Change in
Unrealized
Gains
(Losses)
Related to
Financial
Instruments
Held as of
June 30, 2017
(In millions)
Recorded in Revenue(1)
 
Recorded in Other Comprehensive Income(1)
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AFS Investment securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Student loans
$
99

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
(99
)
 
$
—

 
 
Other
771

 
1

 
(1
)
 
199

 
(120
)
 
101

 
—

 
951

 
 
Total asset-backed securities
870

 
1

 
(1
)
 
199

 
(120
)
 
101

 
(99
)
 
951

 
 
Non-U.S. debt securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset-backed securities
59

 
1

 
(1
)
 
—

 
(16
)
 
51

 
(31
)
 
63

 
 
Other
256

 
—

 
—

 
—

 
18

 
—

 
—

 
274

 
 
Total Non-U.S. debt securities
315

 
1

 
(1
)
 
—

 
2

 
51

 
(31
)
 
337

 
 
State and political subdivisions
39

 
—

 
—

 
—

 
(1
)
 
—

 
—

 
38

 
 
Collateralized mortgage obligations
39

 
—

 
—

 
—

 
—

 
—

 
(39
)
 
—

 
 
Other U.S. debt securities
—

 
—

 
—

 
19

 
—

 
—

 
—

 
19

 
 
Total AFS investment securities
1,263


2


(2
)

218


(119
)

152


(169
)
 
1,345

 
 
Other assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
2

 
1

 
—

 
2

 
—

 
—

 
—

 
5

 
$
2

Total derivative instruments
2

 
1

 
—

 
2

 
—

 
—

 
—

 
5

 
2

Total assets carried at fair value
$
1,265


$
3


$
(2
)

$
220


$
(119
)

$
152


$
(169
)

$
1,350

 
$
2


 
 
 
 
(1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within trading services.  

 
Fair Value Measurements Using Significant Unobservable Inputs
 
Six Months Ended June 30, 2017
 
Fair Value  as of
December 31,
2016
 
Total Realized and
Unrealized Gains (Losses)
 
Purchases
 
Settlements
 
Transfers into Level 3
 
Transfers out of Level 3
 
Fair Value as of June 30, 2017
 
Change in
Unrealized
Gains
(Losses)
Related to
Financial
Instruments
Held as of
June 30, 2017
(In millions)
Recorded in Revenue(1)
 
Recorded in Other Comprehensive Income(1)
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AFS Investment securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Student loans
$
97

 
$
—

 
$
2

 
$
—

 
$
—

 
$
—

 
$
(99
)
 
$
—

 
 
Other
905

 
2

 
(1
)
 
354

 
(410
)
 
101

 
—

 
951

 
 
Total asset-backed securities
1,002


2


1


354


(410
)

101


(99
)

951

 
 
Non-U.S. debt securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset-backed securities
32

 
1

 
(1
)
 
31

 
(20
)
 
51

 
(31
)
 
63

 
 
Other
248

 
—

 
—

 
5

 
21

 
—

 
—

 
274

 
 
Total Non-U.S. debt securities
280


1


(1
)

36


1


51


(31
)

337

 
 
State and political subdivisions
39

 
—

 
—

 
—

 
(1
)
 
—

 
—

 
38

 
 
Collateralized mortgage obligations
16

 
—

 
—

 
23

 
—

 
—

 
(39
)
 
—

 
 
Other U.S. debt securities
—

 
—

 
—

 
19

 
—

 
—

 
—

 
19

 
 
Total AFS investment securities
1,337


3


—


432


(410
)

152


(169
)

1,345

 
 
Other assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
8

 
(6
)
 
—

 
7

 
(4
)
 
—

 
—

 
5

 
$
2

Total derivative instruments
8

 
(6
)
 
—

 
7

 
(4
)
 
—

 
—

 
5

 
2

Total assets carried at fair value
$
1,345


$
(3
)

$
—


$
439


$
(414
)

$
152


$
(169
)

$
1,350

 
$
2

 
 
 
 
(1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within trading services.  

 
Fair-Value Measurements Using Significant Unobservable Inputs
 
Three Months Ended June 30, 2016
 
Fair Value as of March 31,
2016
 
Total Realized and
Unrealized Gains (Losses)
 
Purchases
 
Settlements
 
Transfers
out of
Level 3
 
Fair Value as of June 30, 2016(2)
 
Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of June 30, 2016
(In millions)
Recorded in Revenue(1)
 
Recorded in Other Comprehensive Income(1)
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AFS Investment securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and federal agencies, mortgage-backed securities
$
300

 
$
—

 
$
—

 
$
—

 
$
—

 
$
(275
)
 
$
25

 
 
Asset-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Student loans
186

 
1

 
3

 
—

 
—

 
—

 
190

 
 
Other
1,813

 
9

 
(2
)
 
19

 
(129
)
 
—

 
1,710

 
 
Total asset-backed securities
1,999

 
10

 
1

 
19

 
(129
)
 
—

 
1,900

 
 
Non-U.S. debt securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset-backed securities
127

 
—

 
—

 
53

 
(16
)
 
(53
)
 
111

 
 
Other
295

 
—

 
2

 


 
(7
)
 
(29
)
 
261

 
 
Total non-U.S. debt securities
422

 
—

 
2

 
53

 
(23
)
 
(82
)
 
372

 
 
State and political subdivisions
32

 
—

 
1

 
—

 
—

 
—

 
33

 
 
Collateralized mortgage obligations
82

 
—

 
—

 
—

 
(14
)
 
—

 
68

 
 
Total AFS investment securities
2,835

 
10

 
4

 
72

 
(166
)
 
(357
)
 
2,398

 
 
Total assets carried at fair value
$
2,835

 
$
10

 
$
4

 
$
72

 
$
(166
)
 
$
(357
)
 
$
2,398

 
$
—

 
 
 
 
(1) Total realized and unrealized gains (losses) on AFS investment securities are included within gains (losses) related to investment securities, net. Total realized and unrealized gains (losses) on derivative instruments are included within trading services.
(2) There were no transfers of assets into level 3 during the three months ended June 30, 2016.

 
Fair-Value Measurements Using Significant Unobservable Inputs
 
Six Months Ended June 30, 2016
 
Fair Value as of December 31, 2015
 
Total Realized and
Unrealized Gains (Losses)
 
Purchases
 
Settlements
 
Transfers
out of
Level 3
 
Fair Value as of June 30, 2016(1)
 
Change in Unrealized Gains (Losses) Related to Financial Instruments Held as of June 30, 2016
(In millions)
Recorded
in
Revenue
 
Recorded
in Other
Comprehensive
Income
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AFS Investment securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and federal agencies, mortgage-backed securities
$
—

 
$
—

 
$
—

 
$
300

 
$
—

 
$
(275
)
 
$
25

 
 
Asset-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Student loans
189

 
1

 
—

 
—

 
—

 
—

 
190

 
 
Other
1,764

 
16

 
(13
)
 
132

 
(189
)
 
—

 
1,710

 
 
Total asset-backed securities
1,953

 
17

 
(13
)
 
132

 
(189
)
 
—

 
1,900

 
 
Non-U.S. debt securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset-backed securities
174

 
—

 
(1
)
 
107

 
(34
)
 
(135
)
 
111

 
 
Other
255

 
—

 
—

 
29

 
6

 
(29
)
 
261

 
 
Total non-U.S. debt securities
429

 
—

 
(1
)
 
136

 
(28
)
 
(164
)
 
372

 
 
State and political subdivisions
33

 
—

 
1

 
—

 
(1
)
 
—

 
33

 
 
Collateralized mortgage obligations
39

 
—

 
—

 
50

 
(21
)
 
—

 
68

 
 
Other U.S. debt securities
10

 
—

 
—

 
—

 
(10
)
 
—

 
—

 
 
Total AFS investment securities
2,464

 
17

 
(13
)
 
618

 
(249
)
 
(439
)
 
2,398

 
 
Other assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
5

 
3

 
—

 
—

 
(8
)
 
—

 
—

 
$
—

Total derivative instruments
5

 
3

 
—

 
—

 
(8
)

—

 
—

 
—

Total assets carried at fair value
$
2,469

 
$
20

 
$
(13
)
 
$
618

 
$
(257
)
 
$
(439
)
 
$
2,398

 
$
—


 
Fair-Value Measurements Using Significant Unobservable Inputs
 
Six Months Ended June 30, 2016
 
Fair Value as of December 31, 2015
 
Total Realized and
Unrealized (Gains) Losses
 
Settlements
 
Fair Value as of June 30, 2016(2)
 
Change in Unrealized
(Gains) Losses Related to
Financial Instruments Held as of June 30, 2016
(In millions)
Recorded in Revenue
 
Liabilities:
 
 
 
 
 
 
 
 
 
Accrued expenses and other liabilities:
 
 
 
 
 
 
 
 
 
Derivative instruments:
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
$
5

 
$
5

 
$
(10
)
 
$
—

 
$
—

Total derivative instruments
5


5


(10
)

—


—

Total liabilities carried at fair value
$
5


$
5


$
(10
)

$
—


$
—

 
 
 
 
(1) There were no transfers of assets into level 3 during the six months ended June 30, 2016.
(2) There were no transfers of liabilities into or out of level 3 during the six months ended June 30, 2016.
The following table presents quantitative information, as of the dates indicated, about the valuation techniques and significant unobservable inputs used in the valuation of our level 3 financial assets and liabilities measured at fair value on a recurring basis for which we use internally-developed pricing models. The significant unobservable inputs for our level 3 financial assets and liabilities whose fair value is measured using pricing information from non-binding broker or dealer quotes are not included in the table, as the specific inputs applied are not provided by the broker/dealer.
 
Quantitative Information about Level 3 Fair-Value Measurements
 
Fair Value
 
 
 
 
 
Weighted-Average
(Dollars in millions)
As of June 30, 2017
 
As of December 31, 2016
 
Valuation Technique
 
Significant
Unobservable Input
(1)
 
As of June 30, 2017
 
As of December 31, 2016
Significant unobservable inputs readily available to State Street:
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
Asset-backed securities, other
$
—

 
$
1

 
Discounted cash flows
 
Credit spread
 
—
%
 
0.3
%
State and political subdivisions
38

 
39

 
Discounted cash flows
 
Credit spread
 
1.9

 
1.8

Derivative instruments, foreign exchange contracts
5

 
8

 
Option model
 
Volatility
 
7.1

 
14.4

Total
$
43

 
$
48

 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Derivative instruments, foreign exchange contracts
$
3

 
$
8

 
Option model
 
Volatility
 
6.4

 
14.4

Total
$
3

 
$
8

 
 
 
 
 
 
 
 
 
 
 
 
(1) Significant changes in these unobservable inputs would result in significant changes in fair value measurement.

Fair Value Estimates:
Estimates of fair value for financial instruments not carried at fair value on a recurring basis in our consolidated statement of condition are generally subjective in nature, and are determined as of a specific point in time based on the characteristics of the financial instruments and relevant market information.
The following tables present the reported amounts and estimated fair values of the financial assets and liabilities not carried at fair value on a recurring basis, as they would be categorized within the fair-value hierarchy, as of the dates indicated.
 
 
 
 
 
 
Fair-Value Hierarchy
(In millions)
 
Reported Amount 
 
Estimated Fair Value
 
Quoted Market Prices in Active Markets (Level 1)
 
Pricing Methods with Significant Observable Market Inputs (Level 2) 
 
Pricing Methods with Significant Unobservable Market Inputs (Level 3)
June 30, 2017
 
 
 
 
 
 
 
 
 
 
Financial Assets:
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
$
3,156

 
$
3,156

 
$
3,156

 
$
—

 
$
—

Interest-bearing deposits with banks
 
63,617

 
63,617

 
—

 
63,617

 
—

Securities purchased under resale agreements
 
3,172

 
3,172

 
—

 
3,172

 
—

Investment securities held-to-maturity
 
36,230

 
36,169

 
17,392

 
18,651

 
126

Net loans (excluding leases)
 
23,547

 
23,545

 
—

 
23,486

 
59

Financial Liabilities:
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
     Non-interest-bearing
 
$
50,957

 
$
50,957

 
$
—

 
$
50,957

 
$
—

     Interest-bearing - U.S.
 
24,438

 
24,438

 
—

 
24,438

 
—

     Interest-bearing - non-U.S.
 
106,021

 
106,021

 
—

 
106,021

 
—

Securities sold under repurchase agreements
 
3,856

 
3,856

 
—

 
3,856

 
—

Other short-term borrowings
 
1,465

 
1,465

 
—

 
1,465

 
—

Long-term debt
 
11,737

 
12,022

 
—

 
11,710

 
312


 
 
 
 
 
 
Fair-Value Hierarchy
(In millions)
 
Reported Amount 
 
Estimated Fair Value
 
Quoted Market Prices in Active Markets (Level 1)
 
Pricing Methods with Significant Observable Market Inputs (Level 2) 
 
Pricing Methods with Significant Unobservable Market Inputs (Level 3)
December 31, 2016
 
 
 
 
 
 
 
 
 
 
Financial Assets:
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
$
1,314

 
$
1,314

 
$
1,314

 
$
—

 
$
—

Interest-bearing deposits with banks
 
70,935

 
70,935

 
—

 
70,935

 
—

Securities purchased under resale agreements
 
1,956

 
1,956

 
—

 
1,956

 
—

Investment securities held-to-maturity
 
35,169

 
34,994

 
17,400

 
17,439

 
155

Net loans (excluding leases)
 
18,862

 
18,877

 
—

 
18,781

 
96

Financial Liabilities:
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
     Non-interest-bearing
 
$
59,397

 
$
59,397

 
$
—

 
$
59,397

 
$
—

     Interest-bearing - U.S.
 
30,911

 
30,911

 
—

 
30,911

 
—

     Interest-bearing - non-U.S.
 
96,855

 
96,855

 
—

 
96,855

 
—

Securities sold under repurchase agreements
 
4,400

 
4,400

 
—

 
4,400

 
—

Other short-term borrowings
 
1,585

 
1,585

 
—

 
1,585

 
—

Long-term debt
 
11,430

 
11,618

 
—

 
11,282

 
336