FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2018

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 loans held for sale measured at fair value:



	September 30, 2018						December 31, 2017
(in millions)	Aggregate Fair Value		Aggregate Unpaid Principal		Aggregate Fair Value Less Aggregate Unpaid Principal		Aggregate Fair Value		Aggregate Unpaid Principal		Aggregate Fair Value Less Aggregate Unpaid Principal
Residential mortgage loans held for sale, at fair value		$1,140		$1,140		$—		$326		$326		$—
Commercial and commercial real estate loans held for sale, at fair value	163		163		—		171		171		—

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 September 30, 2018:



(in millions)	Total		Level 1		Level 2		Level 3
Debt securities available for sale:
Mortgage-backed securities		$20,135		$—		$20,135		$—
State and political subdivisions	5		—		5		—
U.S. Treasury and other	12		12		—		—
Total debt securities available for sale	20,152		12		20,140		—
Loans held for sale, at fair value:
Residential loans held for sale	1,140		—		1,140		—
Commercial loans held for sale	163		—		163		—
Total loans held for sale, at fair value	1,303		—		1,303		—
Mortgage servicing rights	612		—		—		612
Derivative assets:
Interest rate contracts	165		—		165		—
Foreign exchange contracts	116		—		116		—
Other contracts	19		—		19		—
Total derivative assets	300		—		300		—
Equity securities, at fair value:
Money market mutual fund investments	175		175		—		—
Other investments	—		—		—		—
Total equity securities, at fair value	175		175		—		—
Total assets		$22,542		$187		$21,743		$612
Derivative liabilities:
Interest rate contracts		$469		$—		$469		$—
Foreign exchange contracts	105		—		105		—
Other contracts	1		—		1		—
Total derivative liabilities	575		—		575		—
Total liabilities		$575		$—		$575		$—

The following table presents assets and liabilities measured at fair value, including gross derivative assets and liabilities on a recurring basis at December 31, 2017:



(in millions)	Total		Level 1		Level 2		Level 3
Debt securities available for sale:
Mortgage-backed securities		$20,139		$—		$20,139		$—
State and political subdivisions	6		—		6		—
U.S. Treasury and other	12		12		—		—
Total debt securities available for sale	20,157		12		20,145		—
Loans held for sale, at fair value:
Residential loans held for sale	326		—		326		—
Commercial loans held for sale	171		—		171		—
Total loans held for sale, at fair value	497		—		497		—
Derivative assets:
Interest rate contracts	538		—		538		—
Foreign exchange contracts	148		—		148		—
Other contracts	7		—		7		—
Total derivative assets	693		—		693		—
Equity securities, at fair value:
Money market mutual fund investments	165		165		—		—
Other investments	4		—		4		—
Total equity securities, at fair value	169		165		4		—
Total assets		$21,516		$177		$21,339		$—
Derivative liabilities:
Interest rate contracts		$379		$—		$379		$—
Foreign exchange contracts	149		—		149		—
Other contracts	5		—		5		—
Total derivative liabilities	533		—		533		—
Total liabilities		$533		$—		$533		$—

Asses measured at fair value on recurring basis and classified as Level 3

The following tables present a rollforward of the balance sheet amounts for assets measured at fair value on a recurring basis and classified as Level 3 for the three and nine months ended September 30, 2018. There were no assets measured at fair value on a recurring basis and classified as Level 3 for the three and nine months ended September 30, 2017.



	For the Three Months Ended September 30,
(in millions)	Mortgage Servicing Rights
Balance at July 1, 2018		$—
Acquired MSRs	590
Amount capitalized	29
Change in unpaid principal balance during the period ⁽¹⁾	(12		)
Change in fair value during the period ⁽²⁾	5
Balance at September 30, 2018		$612



	For the Nine Months Ended September 30,
(in millions)	Mortgage Servicing Rights
Balance at January 1, 2018		$—
Acquired MSRs	590
Amount capitalized	29
Change in unpaid principal balance during the period ⁽¹⁾	(12		)
Change in fair value during the period ⁽²⁾	5
Balance at September 30, 2018		$612

⁽¹⁾ 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.

⁽²⁾ Represents changes in value primarily due to market driven changes in interest rates and prepayment speeds.

Gains (losses) on assets and liabilities measured on a nonrecurring basis included in earnings

The following table presents gains (losses) on assets and liabilities measured at fair value on a nonrecurring basis and recorded in earnings:



	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2018			2017			2018			2017
Impaired collateral-dependent loans		($3	)		($4	)		($9	)		($31	)
MSRs	—			—			3			(1		)
Foreclosed assets	(1		)	(1		)	(2		)	(3		)
Leased assets	(4		)	—			(6		)	(15		)

Fair value of assets and liabilities measured on a nonrecurring basis

The following table presents assets and liabilities measured at fair value on a nonrecurring basis:



	September 30, 2018								December 31, 2017
(in millions)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Impaired collateral-dependent loans		$336		$—		$336		$—		$393		$—		$393		$—
MSRs	261		—		—		261		218		—		—		218
Foreclosed assets	25		—		25		—		31		—		31		—
Leased assets	93		—		93		—		112		—		112		—

Assets and liabilities measured at fair value

The following table presents the estimated fair value for financial instruments not recorded at fair value in the unaudited interim Consolidated Financial Statements. The carrying amounts are recorded in the Consolidated Balance Sheets under the indicated captions:



	September 30, 2018
	Total				Level 1				Level 2				Level 3
(in millions)	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial Assets:
Securities held to maturity		$4,284		$4,102		$—		$—		$4,284		$4,102		$—		$—
Equity securities, at cost	874		874		—		—		874		874		—		—
Other loans held for sale	27		27		—		—		—		—		27		27
Loans and leases	114,720		113,913		—		—		336		336		114,384		113,577
Financial Liabilities:
Deposits	117,075		116,892		—		—		117,075		116,892		—		—
Federal funds purchased and securities sold under agreements to repurchase	374		374		—		—		374		374		—		—
Other short-term borrowed funds	2,006		2,006		—		—		2,006		2,006		—		—
Long-term borrowed funds	15,639		15,630		—		—		15,639		15,630		—		—



	December 31, 2017
	Total				Level 1				Level 2				Level 3
(in millions)	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial Assets:
Securities held to maturity		$4,685		$4,668		$—		$—		$4,685		$4,668		$—		$—
Equity securities, at cost	722		722		—		—		722		722		—		—
Other loans held for sale	221		221		—		—		—		—		221		221
Loans and leases	110,617		111,168		—		—		393		393		110,224		110,775
Financial Liabilities:
Deposits	115,089		115,039		—		—		115,089		115,039		—		—
Federal funds purchased and securities sold under agreements to repurchase	815		815		—		—		815		815		—		—
Other short-term borrowed funds	1,856		1,856		—		—		1,856		1,856		—		—
Long-term borrowed funds	11,765		11,891		—		—		11,765		11,891		—		—