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Fair Value (Tables) | 3 Months Ended
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Mar. 31, 2022
Fair Value Disclosures [Abstract] |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and Liabilities Measured at Fair Value - Recurring Basis (dollars in millions)
| March 31, 2022
dollars in millions | Total |  | Level 1 |  | Level 2 |  | Level 3
Assets |  |  |  |  |  |  |
Investment securities available for sale |  |  |  |  |  |  |
U.S. Treasury | $ | 1,931 |  |  | $ | — |  |  | $ | 1,931 |  |  | $ | — |
Government agency | 206 |  |  | — |  |  | 206 |  |  | — |
Residential mortgage-backed securities | 5,052 |  |  | — |  |  | 5,052 |  |  | — |
Commercial mortgage-backed securities | 1,520 |  |  | — |  |  | 1,520 |  |  | — |
Corporate bonds | 586 |  |  | — |  |  | 400 |  |  | 186 |
Total investment securities available for sale | $ | 9,295 |  |  | $ | — |  |  | $ | 9,109 |  |  | $ | 186 |
Marketable equity securities | 100 |  |  | 33 |  |  | 67 |  |  | — |
Loans held for sale | 65 |  |  | — |  |  | 65 |  |  | — |
Derivative assets(1) |  |  |  |  |  |  |
Interest rate contracts — non-qualifying hedges | 106 |  |  | — |  |  | 105 |  |  | 1 |
Other derivative — non-qualifying hedges | 4 |  |  | — |  |  | 4 |  |  | — |
Total derivative assets | $ | 110 |  |  | $ | — |  |  | $ | 109 |  |  | $ | 1 |
Liabilities |  |  |  |  |  |  |
Derivative liabilities(1) |  |  |  |  |  |  |
Interest rate contracts — non-qualifying hedges | $ | 199 |  |  | $ | — |  |  | $ | 199 |  |  | $ | — |
Other derivative— non-qualifying hedges | 5 |  |  | — |  |  | 4 |  |  | 1 |
Total derivative liabilities | $ | 204 |  |  | $ | — |  |  | $ | 203 |  |  | $ | 1 |
| December 31, 2021
dollars in millions | Total |  | Level 1 |  | Level 2 |  | Level 3
Assets |  |  |  |  |  |  |
Investment securities available for sale |  |  |  |  |  |  |
U.S. Treasury | $ | 2,005 |  |  | $ | — |  |  | $ | 2,005 |  |  | $ | — |
Government agency | 221 |  |  | — |  |  | 221 |  |  | — |
Residential mortgage-backed securities | 4,729 |  |  | — |  |  | 4,729 |  |  | — |
Commercial mortgage-backed securities | 1,640 |  |  | — |  |  | 1,640 |  |  | — |
Corporate bonds | 608 |  |  | — |  |  | 401 |  |  | 207 |
Total investment securities available for sale | $ | 9,203 |  |  | $ | — |  |  | $ | 8,996 |  |  | $ | 207 |
Marketable equity securities | 98 |  |  | 34 |  |  | 64 |  |  | — |
Loans held for sale | 99 |  |  | — |  |  | 99 |  |  | — |
(1)Derivative fair values include accrued interest.
Schedule of Fair Value Measurement Inputs and Valuation Techniques | The following tables summarize information about significant unobservable inputs related to BancShares’ categories of Level 3 financial assets and liabilities measured on a recurring basis. Quantitative Information About Level 3 Fair Value Measurements - Recurring Basis
dollars in millions |  |  |  |  |  |  |  |  |
Financial Instrument | Estimated Fair Value |  | Valuation Technique(s) |  | Significant Unobservable Inputs |  | Range of Inputs |  | Weighted Average
March 31, 2022 |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |
Corporate bonds | $ | 186 |  |  | Indicative bid provided by broker |  | Multiple factors, including but not limited to, current operations, financial condition, cash flows, and recently executed financing transactions related to the issuer |  |  |  |
Interest rate & other derivative — non-qualifying hedges | $ | 1 |  |  | Internal valuation model |  | Not material |  | Not material |  | Not material
Liabilities |  |  |  |  |  |  |  |  |
Interest rate & other derivative — non-qualifying hedges | $ | 1 |  |  | Internal valuation model |  | Not material |  | Not material |  | Not material
December 31, 2021 |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |
Corporate bonds | $ | 207 |  |  | Indicative bid provided by broker |  | Multiple factors, including but not limited to, current operations, financial condition, cash flows, and recently executed financing transactions related to the issuer |  |  |  |
Schedule of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table summarizes the changes in estimated fair value for all assets and liabilities measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3). Changes in Estimated Fair Value of Level 3 Financial Assets and Liabilities - Recurring Basis
| Three months ended March 31, 2022 |  | Three months ended March 31, 2021
dollars in millions | Corporate Bonds |  | Other Derivative Assets — Non-Qualifying |  | Other Derivative Liabilities — Non-Qualifying |  | Corporate Bonds
Beginning balance | $ | 207 |  |  | $ | — |  |  | $ | — |  |  | $ | 317 |
Purchases | — |  |  | — |  |  | 1 |  |  | — |
Included in earnings | — |  |  | 1 |  |  | — |  |  | — |
Included in comprehensive income | (7) |  |  | — |  |  | — |  |  | 2 |
Transfers in | — |  |  | — |  |  | — |  |  | — |
Transfers out | (14) |  |  | — |  |  | — |  |  | — |
Maturity and settlements | — |  |  | — |  |  | — |  |  | (1) |
Ending balance | $ | 186 |  |  | $ | 1 |  |  | $ | 1 |  |  | $ | 318 |
Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table summarizes the changes in estimated fair value for all assets and liabilities measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3). Changes in Estimated Fair Value of Level 3 Financial Assets and Liabilities - Recurring Basis
| Three months ended March 31, 2022 |  | Three months ended March 31, 2021
dollars in millions | Corporate Bonds |  | Other Derivative Assets — Non-Qualifying |  | Other Derivative Liabilities — Non-Qualifying |  | Corporate Bonds
Beginning balance | $ | 207 |  |  | $ | — |  |  | $ | — |  |  | $ | 317 |
Purchases | — |  |  | — |  |  | 1 |  |  | — |
Included in earnings | — |  |  | 1 |  |  | — |  |  | — |
Included in comprehensive income | (7) |  |  | — |  |  | — |  |  | 2 |
Transfers in | — |  |  | — |  |  | — |  |  | — |
Transfers out | (14) |  |  | — |  |  | — |  |  | — |
Maturity and settlements | — |  |  | — |  |  | — |  |  | (1) |
Ending balance | $ | 186 |  |  | $ | 1 |  |  | $ | 1 |  |  | $ | 318 |
Schedule of Fair Value Option | The following table summarizes the difference between the aggregate fair value and the UPB for residential real estate loans originated for sale measured at fair value as of March 31, 2022 and December 31, 2021.
| March 31, 2022
dollars in millions | Fair Value |  | Unpaid Principal Balance |  | Difference
Originated loans held for sale | $ | 65 |  |  | $ | 65 |  |  | $ | — |
| December 31, 2021
| Fair Value |  | Unpaid Principal Balance |  | Difference
Originated loans held for sale | $ | 99 |  |  | $ | 96 |  |  | $ | 3 |
Schedule of Fair Value, Assets Measured on Nonrecurring Basis | The following table presents carrying value of assets measured at estimated fair value on a non-recurring basis for which gains and losses from a non-recurring fair value adjustment have been recorded in the periods. The gains and losses reflect amounts recorded for the respective periods, regardless of whether the asset is still held at period end. Assets Measured at Fair Value - Non-recurring Basis
| Fair Value Measurements |  |
dollars in millions | Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Total Gains (Losses)
March 31, 2022 |  |  |  |  |  |  |  |  |
Assets held for sale - loans | $ | 2 |  |  | $ | — |  |  | $ | — |  |  | $ | 2 |  |  | $ | — |
Loans - collateral dependent loans | 109 |  |  | — |  |  | — |  |  | 109 |  |  | (8) |
Other real estate owned | 39 |  |  | — |  |  | — |  |  | 39 |  |  | 2 |
Mortgage servicing rights | 1 |  |  | — |  |  | — |  |  | 1 |  |  | 1 |
Total | $ | 151 |  |  | $ | — |  |  | $ | — |  |  | $ | 151 |  |  | $ | (5) |
December 31, 2021 |  |  |  |  |  |  |  |  |
Other real estate owned | $ | 34 |  |  | $ | — |  |  | $ | — |  |  | $ | 34 |  |  | $ | (4) |
Loans - collateral dependent loans | 3 |  |  | — |  |  | — |  |  | 3 |  |  | (2) |
Mortgage servicing rights | 22 |  |  | — |  |  | — |  |  | 22 |  |  | 3 |
Total | $ | 59 |  |  | $ | — |  |  | $ | — |  |  | $ | 59 |  |  | $ | (3) |
Schedule of Carrying Values and Estimated Fair Values for Financial Instruments | The table below presents the carrying values and estimated fair values for financial instruments. The carrying values and estimated fair values of financial instruments exclude leases and certain other assets and liabilities, which were not required for disclosure. Carrying Values and Fair Values of Financial Assets and Liabilities
| March 31, 2022
|  |  | Estimated Fair Value
dollars in millions | Carrying Value |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Financial Assets |  |  |  |  |  |  |  |  |
Cash and due from banks | $ | 523 |  |  | $ | 523 |  |  | $ | — |  |  | $ | — |  |  | $ | 523 |
Interest earning deposits at banks | 9,285 |  |  | 9,285 |  |  | — |  |  | — |  |  | 9,285 |
Investment securities available for sale | 9,295 |  |  | — |  |  | 9,109 |  |  | 186 |  |  | 9,295 |
Investment securities held to maturity | 10,074 |  |  | — |  |  | 9,457 |  |  | — |  |  | 9,457 |
Investment in marketable equity securities | 100 |  |  | 33 |  |  | 67 |  |  | — |  |  | 100 |
Loans held for sale | 81 |  |  | — |  |  | 65 |  |  | 16 |  |  | 81 |
Net loans | 62,489 |  |  | — |  |  | 1,574 |  |  | 59,757 |  |  | 61,331 |
Income earned not collected | 247 |  |  | — |  |  | 247 |  |  | — |  |  | 247 |
Federal Home Loan Bank stock | 39 |  |  | — |  |  | 39 |  |  | — |  |  | 39 |
Mortgage and other servicing rights | 28 |  |  | — |  |  | — |  |  | 35 |  |  | 35 |
Derivative assets | 110 |  |  | — |  |  | 109 |  |  | 1 |  |  | 110 |
Financial Liabilities |  |  |  |  |  |  |  |  |
Deposits | 91,597 |  |  | — |  |  | 91,572 |  |  | — |  |  | 91,572 |
Securities sold under customer repurchase agreements | 616 |  |  | — |  |  | 616 |  |  | — |  |  | 616 |
Long-term borrowings | 2,672 |  |  | — |  |  | 2,606 |  |  | 15 |  |  | 2,621 |
Credit balances of factoring clients | 1,150 |  |  | — |  |  | — |  |  | 1,150 |  |  | 1,150 |
Accrued interest payable | 24 |  |  | — |  |  | 24 |  |  | — |  |  | 24 |
Derivative liabilities | 204 |  |  | — |  |  | 203 |  |  | 1 |  |  | 204 |
| December 31, 2021
|  |  | Estimated Fair Value
dollars in millions | Carrying Value |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Financial Assets |  |  |  |  |  |  |  |  |
Cash and due from banks | $ | 338 |  |  | $ | 338 |  |  | $ | — |  |  | $ | — |  |  | $ | 338 |
Interest earning deposits at banks | 9,115 |  |  | 9,115 |  |  | — |  |  | — |  |  | 9,115 |
Investment securities available for sale | 9,203 |  |  | — |  |  | 8,996 |  |  | 207 |  |  | 9,203 |
Investment securities held to maturity | 3,809 |  |  | — |  |  | 3,759 |  |  | — |  |  | 3,759 |
Investment in marketable equity securities | 98 |  |  | 34 |  |  | 64 |  |  | — |  |  | 98 |
Loans held for sale | 99 |  |  | — |  |  | 99 |  |  | — |  |  | 99 |
Net loans | 32,193 |  |  | — |  |  | — |  |  | 31,890 |  |  | 31,890 |
Income earned not collected | 134 |  |  | — |  |  | 134 |  |  | — |  |  | 134 |
Federal Home Loan Bank stock | 40 |  |  | — |  |  | 40 |  |  | — |  |  | 40 |
Mortgage and other servicing rights | 23 |  |  | — |  |  | — |  |  | 23 |  |  | 23 |
Financial Liabilities |  |  |  |  |  |  |  |  |
Deposits with no stated maturity | 48,925 |  |  | — |  |  | 48,925 |  |  | — |  |  | 48,925 |
Time deposits | 2,481 |  |  | — |  |  | 2,471 |  |  | — |  |  | 2,471 |
Securities sold under customer repurchase agreements | 589 |  |  | — |  |  | 589 |  |  | — |  |  | 589 |
Long-term borrowings | 1,195 |  |  | — |  |  | 1,222 |  |  | — |  |  | 1,222 |
Accrued interest payable | 8 |  |  | — |  |  | 8 |  |  | — |  |  | 8 |

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