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Fair Value Measurements (Tables) | 9 Months Ended
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Sep. 30, 2021
Fair Value Disclosures [Abstract] |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present assets and liabilities that were measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020, and that were included in the Company’s Consolidated Statements of Condition at those dates:
|  | Fair Value Measurements at September 30, 2021 |
(dollars in millions) |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |  |  | Netting Adjustments |  |  | Total Fair Value |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-Related Debt Securities Available for Sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GSE certificates |  | $ | — |  |  | $ | 1,130 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,130 |
GSE CMOs |  |  | — |  |  |  | 1,849 |  |  |  | — |  |  |  | — |  |  |  | 1,849 |
Total mortgage-related debt securities |  | $ | — |  |  | $ | 2,979 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,979 |
Other Debt Securities Available for Sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U. S. Treasury obligations |  | $ | 65 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 65 |
GSE debentures |  |  | — |  |  |  | 1,372 |  |  |  | — |  |  |  | — |  |  |  | 1,372 |
Asset-backed securities |  |  | — |  |  |  | 495 |  |  |  | — |  |  |  | — |  |  |  | 495 |
Municipal bonds |  |  | — |  |  |  | 25 |  |  |  | — |  |  |  | — |  |  |  | 25 |
Corporate bonds |  |  | — |  |  |  | 841 |  |  |  | — |  |  |  | — |  |  |  | 841 |
Foreign notes |  |  | — |  |  |  | 26 |  |  |  | — |  |  |  | — |  |  |  | 26 |
Capital trust notes |  |  | — |  |  |  | 95 |  |  |  | — |  |  |  | — |  |  |  | 95 |
Total other debt securities |  | $ | 65 |  |  | $ | 2,854 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,919 |
Total debt securities available for sale |  | $ | 65 |  |  | $ | 5,833 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,898 |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mutual funds |  |  | — |  |  |  | 16 |  |  |  | — |  |  |  | — |  |  |  | 16 |
Total equity securities |  | $ | — |  |  | $ | 16 |  |  | $ | — |  |  | $ | — |  |  | $ | 16 |
Total securities |  | $ | 65 |  |  | $ | 5,849 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,914 |
|  | Fair Value Measurements at December 31, 2020 |
(dollars in millions) |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |  |  | Netting Adjustments |  |  | Total Fair Value |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-Related Debt Securities Available for Sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
GSE certificates |  | $ | — |  |  | $ | 1,209 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,209 |
GSE CMOs |  |  | — |  |  |  | 1,829 |  |  |  | — |  |  |  | — |  |  |  | 1,829 |
Total mortgage-related debt securities |  | $ | — |  |  | $ | 3,038 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,038 |
Other Debt Securities Available for Sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury obligations |  | $ | 65 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 65 |
GSE debentures |  |  | — |  |  |  | 1,158 |  |  |  | — |  |  |  | — |  |  |  | 1,158 |
Asset-backed securities |  |  | — |  |  |  | 526 |  |  |  | — |  |  |  | — |  |  |  | 526 |
Municipal bonds |  |  | — |  |  |  | 27 |  |  |  | — |  |  |  | — |  |  |  | 27 |
Corporate bonds |  |  | — |  |  |  | 883 |  |  |  | — |  |  |  | — |  |  |  | 883 |
Foreign notes |  |  | — |  |  |  | 26 |  |  |  |  |  |  |  |  |  | 26 |
Capital trust notes |  |  | — |  |  |  | 91 |  |  |  | — |  |  |  | — |  |  |  | 91 |
Total other debt securities |  | $ | 65 |  |  | $ | 2,711 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,776 |
Total debt securities available for sale |  | $ | 65 |  |  | $ | 5,749 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,814 |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock |  | $ | 15 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 15 |
Mutual funds |  |  | — |  |  |  | 16 |  |  |  | — |  |  |  | — |  |  |  | 16 |
Total equity securities |  | $ | 15 |  |  | $ | 16 |  |  | $ | — |  |  | $ | — |  |  | $ | 31 |
Total securities |  | $ | 80 |  |  | $ | 5,765 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,845 |
Summary of Carrying Values, Estimated Fair Values and Fair Value Measurement Levels of Financial Instruments | The following tables present assets and liabilities that were measured at fair value on a non-recurring basis as of September 30, 2021 and December 31, 2020, and that were included in the Company’s Consolidated Statements of Condition at those dates:
|  | Fair Value Measurements at September 30, 2021 Using |
(dollars in millions) |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |  |  | Total Fair Value |
Certain nonaccrual loans (1) |  | $ | — |  |  | $ | — |  |  | $ | 30 |  |  | $ | 30 |
Other assets(2) |  |  | — |  |  |  | — |  |  |  | 32 |  |  |  | 32 |
Total |  | $ | — |  |  | $ | — |  |  | $ | 62 |  |  | $ | 62 |
(1) Represents the fair value of impaired loans, based on the value of the collateral. (2) Represents the fair value of repossessed assets, based on the appraised value of the collateral subsequent to its initial classification as repossessed assets and equity investments without readily determinable fair values. These equity investments are classified as Level 3 due to the infrequency of the observable prices and/or the restrictions on the shares.
|  | Fair Value Measurements at December 31, 2020 Using |
(dollars in millions) |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |  |  | Total Fair Value |
Certain nonaccrual loans (1) |  | $ | — |  |  | $ | — |  |  | $ | 41 |  |  | $ | 41 |
Other assets (2) |  |  | — |  |  |  | — |  |  |  | 6 |  |  |  | 6 |
Total |  | $ | — |  |  | $ | — |  |  | $ | 47 |  |  | $ | 47 |
(1) Represents the fair value of impaired loans, based on the value of the collateral. (2) Represents the fair value of repossessed assets, based on the appraised value of the collateral subsequent to its initial classification as repossessed assets and equity investments without readily determinable fair values. These equity investments are classified as Level 3 due to the infrequency of the observable prices and/or the restrictions on the shares.
Assets and Liabilities Measured at Fair Value on Non-Recurring Basis | The following tables summarize the carrying values, estimated fair values, and fair value measurement levels of financial instruments that were not carried at fair value on the Company’s Consolidated Statements of Condition at September 30, 2021 and December 31, 2020:
|  | September 30, 2021 |
|  |  |  |  |  |  |  | Fair Value Measurement Using |
(dollars in millions) |  | Carrying Value |  |  | Estimated Fair Value |  |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |
Financial Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 2,522 |  |  | $ | 2,522 |  |  | $ | 2,522 |  |  | $ | — |  |  | $ | — |
FHLB stock (1) |  |  | 684 |  |  |  | 684 |  |  |  | — |  |  |  | 684 |  |  |  | — |
Loans, net |  |  | 43,487 |  |  |  | 42,896 |  |  |  | — |  |  |  | — |  |  |  | 42,896 |
Financial Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  | $ | 34,621 |  |  | $ | 34,628 |  |  | $ | 25,897 |  | (2) | $ | 8,731 |  | (3) | $ | — |
Borrowed funds |  |  | 15,434 |  |  |  | 16,154 |  |  |  | — |  |  |  | 16,154 |  |  |  | — |
(1) Carrying value and estimated fair value are at cost. (2) Interest-bearing checking and money market accounts, savings accounts, and non-interest-bearing accounts. (3) Certificates of deposit.
|  | December 31, 2020 |
|  |  |  |  |  |  |  | Fair Value Measurement Using |
(dollars in millions) |  | Carrying Value |  |  | Estimated Fair Value |  |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |
Financial Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 1,948 |  |  | $ | 1,948 |  |  | $ | 1,948 |  |  | $ | — |  |  | $ | — |
FHLB stock (1) |  |  | 714 |  |  |  | 714 |  |  |  | — |  |  |  | 714 |  |  |  | — |
Loans, net |  |  | 42,807 |  |  |  | 42,376 |  |  |  | — |  |  |  | — |  |  |  | 42,376 |
Financial Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  | $ | 32,437 |  |  | $ | 32,466 |  |  | $ | 22,106 |  | (2) | $ | 10,360 |  | (3) | $ | — |
Borrowed funds |  |  | 16,084 |  |  |  | 16,794 |  |  |  | — |  |  |  | 16,794 |  |  |  | — |
(1) Carrying value and estimated fair value are at cost. (2) Interest-bearing checking and money market accounts, savings accounts, and non-interest-bearing accounts. (3) Certificates of deposit.

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- 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 http://asc.fasb.org/extlink&oid=117815213&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 http://asc.fasb.org/extlink&oid=117815213&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 http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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- 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 http://asc.fasb.org/extlink&oid=121572278&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 http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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- 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 http://asc.fasb.org/extlink&oid=117815213&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 http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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