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Fair Value Measurements (Tables)

9 Months Ended

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.

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

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
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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

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-Publisher FASB
-Name Accounting Standards Codification
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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

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-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258

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