XML 57 R47.htm IDEA: XBRL DOCUMENT
v3.22.2

Fair Value (Tables) | 6 Months Ended
--- | ---
Jun. 30, 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)
| June 30, 2022
dollars in millions | Total |  | Level 1 |  | Level 2 |  | Level 3
Assets |  |  |  |  |  |  |
Investment securities available for sale |  |  |  |  |  |  |
U.S. Treasury | $ | 1,903 |  |  | $ | — |  |  | $ | 1,903 |  |  | $ | — |
Government agency | 190 |  |  | — |  |  | 190 |  |  | — |
Residential mortgage-backed securities | 5,020 |  |  | — |  |  | 5,020 |  |  | — |
Commercial mortgage-backed securities | 1,527 |  |  | — |  |  | 1,527 |  |  | — |
Corporate bonds | 570 |  |  | — |  |  | 390 |  |  | 180 |
Total investment securities available for sale | $ | 9,210 |  |  | $ | — |  |  | $ | 9,030 |  |  | $ | 180 |
Marketable equity securities | 94 |  |  | 32 |  |  | 62 |  |  | — |
Loans held for sale | 22 |  |  | — |  |  | 22 |  |  | — |
Derivative assets(1) |  |  |  |  |  |  |
Interest rate contracts — non-qualifying hedges | 76 |  |  | — |  |  | 75 |  |  | 1 |
Other derivative — non-qualifying hedges | 4 |  |  | — |  |  | 4 |  |  | — |
Total derivative assets | $ | 80 |  |  | $ | — |  |  | $ | 79 |  |  | $ | 1 |
Liabilities |  |  |  |  |  |  |
Derivative liabilities(1) |  |  |  |  |  |  |
Interest rate contracts — non-qualifying hedges | $ | 305 |  |  | $ | — |  |  | $ | 305 |  |  | $ | — |
Other derivative— non-qualifying hedges | 3 |  |  | — |  |  | 3 |  |  | — |
Total derivative liabilities | $ | 308 |  |  | $ | — |  |  | $ | 308 |  |  | $ | — |
| 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 |  |  |  |
June 30, 2022 |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |
Corporate bonds | $ | 180 |  |  | 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 |  |  |  |
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
| Six Months Ended June 30, 2022 |  | Six Months Ended June 30, 2021
dollars in millions | Corporate Bonds |  | Other Derivative Assets — Non-Qualifying |  | Other Derivative Liabilities — Non-Qualifying |  | Corporate Bonds
Beginning balance | $ | 207 |  |  | $ | — |  |  | $ | — |  |  | $ | 317 |
Purchases | — |  |  | — |  |  | 1 |  |  | 7 |
Included in earnings | — |  |  | 1 |  |  | (1) |  |  | — |
Included in comprehensive income | (13) |  |  | — |  |  | — |  |  | 3 |
Transfers out | (14) |  |  | — |  |  | — |  |  | — |
Maturity and settlements | — |  |  | — |  |  | — |  |  | (2) |
Ending balance | $ | 180 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 325 |
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
| Six Months Ended June 30, 2022 |  | Six Months Ended June 30, 2021
dollars in millions | Corporate Bonds |  | Other Derivative Assets — Non-Qualifying |  | Other Derivative Liabilities — Non-Qualifying |  | Corporate Bonds
Beginning balance | $ | 207 |  |  | $ | — |  |  | $ | — |  |  | $ | 317 |
Purchases | — |  |  | — |  |  | 1 |  |  | 7 |
Included in earnings | — |  |  | 1 |  |  | (1) |  |  | — |
Included in comprehensive income | (13) |  |  | — |  |  | — |  |  | 3 |
Transfers out | (14) |  |  | — |  |  | — |  |  | — |
Maturity and settlements | — |  |  | — |  |  | — |  |  | (2) |
Ending balance | $ | 180 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 325 |
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 June 30, 2022 and December 31, 2021.
| June 30, 2022
dollars in millions | Fair Value |  | Unpaid Principal Balance |  | Difference
Originated loans held for sale | $ | 22 |  |  | $ | 22 |  |  | $ | — |
| 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)
June 30, 2022 |  |  |  |  |  |  |  |  |
Assets held for sale - loans | $ | 3 |  |  | $ | — |  |  | $ | — |  |  | $ | 3 |  |  | $ | — |
Loans - collateral dependent loans | 108 |  |  | — |  |  | — |  |  | 108 |  |  | (9) |
Other real estate owned | 43 |  |  | — |  |  | — |  |  | 43 |  |  | 6 |
Mortgage servicing rights | 1 |  |  | — |  |  | — |  |  | 1 |  |  | 1 |
Total | $ | 155 |  |  | $ | — |  |  | $ | — |  |  | $ | 155 |  |  | $ | (2) |
December 31, 2021 |  |  |  |  |  |  |  |  |
Loans - collateral dependent loans | $ | 3 |  |  | $ | — |  |  | $ | — |  |  | $ | 3 |  |  | $ | (2) |
Other real estate owned | 34 |  |  | — |  |  | — |  |  | 34 |  |  | (4) |
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, excluding leases and certain other assets and liabilities for which these disclosures are not required. Carrying Values and Fair Values of Financial Assets and Liabilities
| June 30, 2022
|  |  | Estimated Fair Value
dollars in millions | Carrying Value |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Financial Assets |  |  |  |  |  |  |  |  |
Cash and due from banks | $ | 583 |  |  | $ | 583 |  |  | $ | — |  |  | $ | — |  |  | $ | 583 |
Interest earning deposits at banks | 6,476 |  |  | 6,476 |  |  | — |  |  | — |  |  | 6,476 |
Investment in marketable equity securities | 94 |  |  | 32 |  |  | 62 |  |  | — |  |  | 94 |
Investment securities available for sale | 9,210 |  |  | — |  |  | 9,030 |  |  | 180 |  |  | 9,210 |
Investment securities held to maturity | 9,832 |  |  | — |  |  | 8,812 |  |  | — |  |  | 8,812 |
Loans held for sale | 35 |  |  | — |  |  | 22 |  |  | 15 |  |  | 37 |
Net loans | 64,739 |  |  | — |  |  | 1,593 |  |  | 60,550 |  |  | 62,143 |
Accrued interest receivable | 258 |  |  | — |  |  | 258 |  |  | — |  |  | 258 |
Federal Home Loan Bank stock | 83 |  |  | — |  |  | 83 |  |  | — |  |  | 83 |
Mortgage and other servicing rights | 28 |  |  | — |  |  | — |  |  | 38 |  |  | 38 |
Derivative assets | 80 |  |  | — |  |  | 79 |  |  | 1 |  |  | 80 |
Financial Liabilities |  |  |  |  |  |  |  |  |
Deposits | 89,329 |  |  | — |  |  | 89,240 |  |  | — |  |  | 89,240 |
Credit balances of factoring clients | 1,070 |  |  | — |  |  | — |  |  | 1,070 |  |  | 1,070 |
Securities sold under customer repurchase agreements | 646 |  |  | — |  |  | 646 |  |  | — |  |  | 646 |
Long-term borrowings | 3,810 |  |  | — |  |  | 3,683 |  |  | 16 |  |  | 3,699 |
Accrued interest payable | 27 |  |  | — |  |  | 27 |  |  | — |  |  | 27 |
Derivative liabilities | 308 |  |  | — |  |  | 308 |  |  | — |  |  | 308 |
| 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 in marketable equity securities | 98 |  |  | 34 |  |  | 64 |  |  | — |  |  | 98 |
Investment securities available for sale | 9,203 |  |  | — |  |  | 8,996 |  |  | 207 |  |  | 9,203 |
Investment securities held to maturity | 3,809 |  |  | — |  |  | 3,759 |  |  | — |  |  | 3,759 |
Loans held for sale | 99 |  |  | — |  |  | 99 |  |  | — |  |  | 99 |
Net loans | 32,193 |  |  | — |  |  | — |  |  | 31,890 |  |  | 31,890 |
Accrued interest receivable | 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 |

X
- Definition Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnNonrecurringBasisTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19279-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI https://asc.fasb.org/extlink&oid=123594938&loc=d3e13467-108611 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19279-110258 + Details
Name: | us-gaap_FairValueLiabilitiesMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of information about asset and liability measured at fair value under fair value option. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=123596393&loc=d3e14210-108612 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI https://asc.fasb.org/extlink&oid=123596393&loc=d3e14172-108612 Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 32 -URI https://asc.fasb.org/extlink&oid=123596393&loc=d3e14217-108612 Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI https://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612 + Details
Name: | us-gaap_FairValueOptionQuantitativeDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration