FAIR VALUES OF ASSETS AND LIABILITIES (Tables)
|
9 Months Ended |
Sep. 30, 2018 |
|---|
| Fair Value Disclosures [Abstract] |
|
| Assets and liabilities measured at fair value on a recurring basis |
Assets and Liabilities measured at fair value on a recurring basis
Assets and liabilities measured at fair value on a recurring basis at September 30, 2018 and December 31, 2017 are summarized below:
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Fair Value Measurements at Reporting Date Using |
|
Netting Adjustments (1) |
|
September 30, 2018 |
(dollar amounts in millions) |
Level 1 |
|
Level 2 |
|
Level 3 |
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|
Assets |
|
|
|
|
|
|
|
|
|
Trading account securities: |
|
|
|
|
|
|
|
|
|
Municipal securities |
$ |
— |
|
|
$ |
5 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
5 |
|
Other securities |
77 |
|
|
1 |
|
|
— |
|
|
— |
|
|
78 |
|
|
77 |
|
|
6 |
|
|
— |
|
|
— |
|
|
83 |
|
Available-for-sale securities: |
|
|
|
|
|
|
|
|
|
U.S. Treasury securities |
5 |
|
|
— |
|
|
— |
|
|
— |
|
|
5 |
|
Residential CMOs |
— |
|
|
6,940 |
|
|
— |
|
|
— |
|
|
6,940 |
|
Residential MBS |
— |
|
|
620 |
|
|
— |
|
|
— |
|
|
620 |
|
Commercial MBS |
— |
|
|
1,703 |
|
|
— |
|
|
— |
|
|
1,703 |
|
Other agencies |
— |
|
|
157 |
|
|
— |
|
|
— |
|
|
157 |
|
Municipal securities |
— |
|
|
571 |
|
|
3,277 |
|
|
— |
|
|
3,848 |
|
Asset-backed securities |
— |
|
|
363 |
|
|
— |
|
|
— |
|
|
363 |
|
Corporate debt |
— |
|
|
87 |
|
|
— |
|
|
— |
|
|
87 |
|
Other securities/sovereign debt |
— |
|
|
4 |
|
|
— |
|
|
— |
|
|
4 |
|
|
5 |
|
|
10,445 |
|
|
3,277 |
|
|
— |
|
|
13,727 |
|
Other securities |
22 |
|
|
— |
|
|
— |
|
|
— |
|
|
22 |
|
Loans held for sale |
— |
|
|
727 |
|
|
— |
|
|
— |
|
|
727 |
|
Loans held for investment |
— |
|
|
49 |
|
|
32 |
|
|
— |
|
|
81 |
|
MSRs |
— |
|
|
— |
|
|
11 |
|
|
— |
|
|
11 |
|
Derivative assets |
— |
|
|
493 |
|
|
5 |
|
|
(318 |
) |
|
180 |
|
Liabilities |
|
|
|
|
|
|
|
|
|
Derivative liabilities |
— |
|
|
437 |
|
|
4 |
|
|
(221 |
) |
|
220 |
|
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|
Fair Value Measurements at Reporting Date Using |
|
Netting Adjustments (1) |
|
December 31, 2017 |
(dollar amounts in millions) |
Level 1 |
|
Level 2 |
|
Level 3 |
|
|
Assets |
|
|
|
|
|
|
|
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|
Trading account securities: |
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|
|
|
|
|
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|
Other securities |
$ |
83 |
|
|
$ |
3 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
86 |
|
|
83 |
|
|
3 |
|
|
— |
|
|
— |
|
|
86 |
|
Available-for-sale securities: |
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|
|
|
|
|
|
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|
U.S. Treasury securities |
5 |
|
|
— |
|
|
— |
|
|
— |
|
|
5 |
|
Residential CMOs |
— |
|
|
6,484 |
|
|
— |
|
|
— |
|
|
6,484 |
|
Residential MBS |
— |
|
|
1,367 |
|
|
— |
|
|
— |
|
|
1,367 |
|
Commercial MBS |
— |
|
|
2,487 |
|
|
— |
|
|
— |
|
|
2,487 |
|
Other agencies |
— |
|
|
70 |
|
|
— |
|
|
— |
|
|
70 |
|
Municipal securities |
— |
|
|
711 |
|
|
3,167 |
|
|
— |
|
|
3,878 |
|
Asset-backed securities |
— |
|
|
443 |
|
|
24 |
|
|
— |
|
|
467 |
|
Corporate debt |
— |
|
|
109 |
|
|
— |
|
|
— |
|
|
109 |
|
Other securities/sovereign debt |
— |
|
|
2 |
|
|
— |
|
|
— |
|
|
2 |
|
|
5 |
|
|
11,673 |
|
|
3,191 |
|
|
— |
|
|
14,869 |
|
Other securities |
19 |
|
|
— |
|
|
— |
|
|
— |
|
|
19 |
|
Loans held for sale |
— |
|
|
413 |
|
|
— |
|
|
— |
|
|
413 |
|
Loans held for investment |
— |
|
|
55 |
|
|
38 |
|
|
— |
|
|
93 |
|
MSRs |
— |
|
|
— |
|
|
11 |
|
|
— |
|
|
11 |
|
Derivative assets |
— |
|
|
316 |
|
|
6 |
|
|
(190 |
) |
|
132 |
|
Liabilities |
|
|
|
|
|
|
|
|
|
Derivative liabilities |
— |
|
|
326 |
|
|
5 |
|
|
(245 |
) |
|
86 |
|
|
|
(1) |
Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and cash collateral held or placed with the same counterparties. |
|
| Rollforward of financial instruments measured on a recurring basis and classified as Level 3 |
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Level 3 Fair Value Measurements
Three Months Ended September 30, 2018 |
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|
Available-for-sale securities |
|
(dollar amounts in millions) |
MSRs |
|
Derivative
instruments
|
|
Municipal
securities
|
|
Loans held for investment |
Opening balance |
$ |
11 |
|
|
$ |
1 |
|
|
$ |
3,178 |
|
|
$ |
34 |
|
Transfers out of Level 3 (1) |
— |
|
|
(12 |
) |
|
— |
|
|
— |
|
Total gains/losses for the period: |
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|
|
|
|
|
|
Included in earnings |
— |
|
|
9 |
|
|
(1 |
) |
|
— |
|
Included in OCI |
— |
|
|
— |
|
|
— |
|
|
— |
|
Purchases/originations |
— |
|
|
— |
|
|
260 |
|
|
— |
|
Sales |
— |
|
|
— |
|
|
— |
|
|
— |
|
Repayments |
— |
|
|
— |
|
|
— |
|
|
(2 |
) |
Settlements |
— |
|
|
3 |
|
|
(160 |
) |
|
— |
|
Closing balance |
$ |
11 |
|
|
$ |
1 |
|
|
$ |
3,277 |
|
|
$ |
32 |
|
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date |
$ |
— |
|
|
$ |
(3 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
|
|
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|
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|
Level 3 Fair Value Measurements
Three Months Ended September 30, 2017 |
|
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|
Available-for-sale securities |
|
|
(dollar amounts in millions) |
MSRs |
|
Derivative
instruments
|
|
Municipal
securities
|
|
Asset-backed
securities
|
|
Loans held for investment |
Opening balance |
$ |
13 |
|
|
$ |
3 |
|
|
$ |
2,872 |
|
|
$ |
43 |
|
|
$ |
44 |
|
Transfers out of Level 3 (1) |
— |
|
|
(1 |
) |
|
— |
|
|
— |
|
|
— |
|
Total gains/losses for the period: |
|
|
|
|
|
|
|
|
|
Included in earnings |
(1 |
) |
|
1 |
|
|
(1 |
) |
|
(2 |
) |
|
— |
|
Included in OCI |
— |
|
|
— |
|
|
(34 |
) |
|
5 |
|
|
— |
|
Purchases/originations |
— |
|
|
— |
|
|
167 |
|
|
— |
|
|
— |
|
Sales |
— |
|
|
— |
|
|
— |
|
|
(22 |
) |
|
— |
|
Repayments |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(4 |
) |
Settlements |
— |
|
|
— |
|
|
(46 |
) |
|
— |
|
|
— |
|
Closing balance |
$ |
12 |
|
|
$ |
3 |
|
|
$ |
2,958 |
|
|
$ |
24 |
|
|
$ |
40 |
|
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date |
$ |
(1 |
) |
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
(1) |
Transfers out of Level 3 represent the settlement value of the derivative instruments (i.e. interest rate lock agreements) that is transferred to loans held for sale, which is classified as Level 2. |
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|
Level 3 Fair Value Measurements
Nine Months Ended September 30, 2018 |
|
|
|
|
|
Available-for-sale securities |
|
|
(dollar amounts in millions) |
MSRs |
|
Derivative
instruments
|
|
Municipal
securities
|
|
Asset-backed
securities
|
|
Loans held for investment |
Opening balance |
$ |
11 |
|
|
$ |
(1 |
) |
|
$ |
3,167 |
|
|
$ |
24 |
|
|
$ |
38 |
|
Transfers out of Level 3 (1) |
— |
|
|
(26 |
) |
|
— |
|
|
— |
|
|
— |
|
Total gains/losses for the period: |
|
|
|
|
|
|
|
|
|
Included in earnings |
— |
|
|
25 |
|
|
(3 |
) |
|
(2 |
) |
|
— |
|
Included in OCI |
— |
|
|
— |
|
|
(37 |
) |
|
11 |
|
|
— |
|
Purchases/originations |
— |
|
|
— |
|
|
539 |
|
|
— |
|
|
— |
|
Sales |
— |
|
|
— |
|
|
— |
|
|
(33 |
) |
|
— |
|
Repayments |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(6 |
) |
Settlements |
— |
|
|
3 |
|
|
(389 |
) |
|
— |
|
|
— |
|
Closing balance |
$ |
11 |
|
|
$ |
1 |
|
|
$ |
3,277 |
|
|
$ |
— |
|
|
$ |
32 |
|
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date |
$ |
— |
|
|
$ |
(1 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
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|
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|
Level 3 Fair Value Measurements
Nine Months Ended September 30, 2017 |
|
|
|
|
|
Available-for-sale securities |
|
|
(dollar amounts in millions) |
MSRs |
|
Derivative
instruments
|
|
Municipal
securities
|
|
Asset-
backed
securities
|
|
Loans held for investment |
Opening balance |
$ |
14 |
|
|
$ |
(2 |
) |
|
$ |
2,798 |
|
|
$ |
76 |
|
|
$ |
48 |
|
Transfers out of Level 3 (1) |
— |
|
|
(4 |
) |
|
— |
|
|
— |
|
|
— |
|
Total gains/losses for the period: |
|
|
|
|
|
|
|
|
|
Included in earnings |
(2 |
) |
|
9 |
|
|
(4 |
) |
|
(5 |
) |
|
1 |
|
Included in OCI |
— |
|
|
— |
|
|
(1 |
) |
|
13 |
|
|
— |
|
Purchases/originations |
— |
|
|
— |
|
|
414 |
|
|
— |
|
|
— |
|
Sales |
— |
|
|
— |
|
|
— |
|
|
(59 |
) |
|
— |
|
Repayments |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(9 |
) |
Settlements |
— |
|
|
— |
|
|
(249 |
) |
|
(1 |
) |
|
— |
|
Closing balance |
$ |
12 |
|
|
$ |
3 |
|
|
$ |
2,958 |
|
|
$ |
24 |
|
|
$ |
40 |
|
Change in unrealized gains or losses for the period included in earnings for assets held at end of the reporting date |
$ |
(2 |
) |
|
$ |
9 |
|
|
$ |
— |
|
|
$ |
(4 |
) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
| Classification of gains and losses due to changes in fair value, recorded in earnings for Level 3 assets and liabilities |
The tables below summarize the classification of gains and losses due to changes in fair value, recorded in earnings for Level 3 assets and liabilities for the three-month and nine-month periods ended September 30, 2018 and 2017:
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|
Level 3 Fair Value Measurements
Three Months Ended September 30, 2018 |
|
|
|
|
|
Available-for-sale securities |
|
(dollar amounts in millions) |
MSRs |
|
Derivative
instruments
|
|
Municipal
securities
|
|
Loans held for investment |
Classification of gains and losses in earnings: |
|
|
|
|
|
|
|
Mortgage banking income |
$ |
— |
|
|
$ |
9 |
|
|
$ |
— |
|
|
$ |
— |
|
Other expense |
— |
|
|
— |
|
|
(1 |
) |
|
— |
|
Total |
$ |
— |
|
|
$ |
9 |
|
|
$ |
(1 |
) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 3 Fair Value Measurements
Three Months Ended September 30, 2017 |
|
|
|
|
|
Available-for-sale securities |
|
|
(dollar amounts in millions) |
MSRs |
|
Derivative
instruments
|
|
Municipal
securities
|
|
Asset-backed
securities
|
|
Loans held for investment |
Classification of gains and losses in earnings: |
|
|
|
|
|
|
|
|
|
Mortgage banking income |
$ |
(1 |
) |
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Securities gains (losses) |
— |
|
|
— |
|
|
— |
|
|
(2 |
) |
|
— |
|
Interest and fee income |
— |
|
|
— |
|
|
(1 |
) |
|
— |
|
|
— |
|
Total |
$ |
(1 |
) |
|
$ |
1 |
|
|
$ |
(1 |
) |
|
$ |
(2 |
) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 3 Fair Value Measurements
Nine Months Ended September 30, 2018 |
|
|
|
|
|
Available-for-sale securities |
|
|
(dollar amounts in millions) |
MSRs |
|
Derivative
instruments
|
|
Municipal
securities
|
|
Asset-backed
securities
|
|
Loans held for investment |
Classification of gains and losses in earnings: |
|
|
|
|
|
|
|
|
|
Mortgage banking income |
$ |
— |
|
|
$ |
25 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Securities gains (losses) |
— |
|
|
— |
|
|
— |
|
|
(2 |
) |
|
— |
|
Other expense |
— |
|
|
— |
|
|
(3 |
) |
|
— |
|
|
— |
|
Total |
$ |
— |
|
|
$ |
25 |
|
|
$ |
(3 |
) |
|
$ |
(2 |
) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level 3 Fair Value Measurements
Nine Months Ended September 30, 2017 |
|
|
|
|
|
Available-for-sale securities |
|
|
(dollar amounts in millions) |
MSRs |
|
Derivative
instruments
|
|
Municipal
securities
|
|
Asset-backed
securities
|
|
Loans held for investment |
Classification of gains and losses in earnings: |
|
|
|
|
|
|
|
|
|
Mortgage banking income |
$ |
(2 |
) |
|
$ |
9 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Securities gains (losses) |
— |
|
|
— |
|
|
— |
|
|
(5 |
) |
|
— |
|
Interest and fee income |
— |
|
|
— |
|
|
(4 |
) |
|
— |
|
|
— |
|
Noninterest income |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
Total |
$ |
(2 |
) |
|
$ |
9 |
|
|
$ |
(4 |
) |
|
$ |
(5 |
) |
|
$ |
1 |
|
|
| Assets and liabilities under the fair value option |
The following tables present the fair value and aggregate principal balance of certain assets and liabilities under the fair value option:
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September 30, 2018 |
(dollar amounts in millions) |
Total Loans |
|
Loans that are 90 or more days past due |
Assets |
Fair value
carrying
amount
|
|
Aggregate
unpaid
principal
|
|
Difference |
|
Fair value
carrying
amount
|
|
Aggregate
unpaid
principal
|
|
Difference |
Loans held for sale |
$ |
727 |
|
|
$ |
713 |
|
|
$ |
14 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Loans held for investment |
81 |
|
|
88 |
|
|
(7 |
) |
|
6 |
|
|
7 |
|
|
(1 |
) |
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December 31, 2017 |
(dollar amounts in millions) |
Total Loans |
|
Loans that are 90 or more days past due |
Assets |
Fair value
carrying
amount
|
|
Aggregate
unpaid
principal
|
|
Difference |
|
Fair value
carrying
amount
|
|
Aggregate
unpaid
principal
|
|
Difference |
Loans held for sale |
$ |
413 |
|
|
$ |
400 |
|
|
$ |
13 |
|
|
$ |
1 |
|
|
$ |
1 |
|
|
$ |
— |
|
Loans held for investment |
93 |
|
|
102 |
|
|
(9 |
) |
|
10 |
|
|
11 |
|
|
(1 |
) |
The following tables present the net gains (losses) from fair value changes for the three-month and nine-month periods ended September 30, 2018 and 2017.
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Net gains (losses) from fair value changes |
|
Net gains (losses) from fair value changes |
(dollar amounts in millions) |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
Assets |
2018 |
|
2017 |
|
2018 |
|
2017 |
Loans held for sale |
$ |
(4 |
) |
|
$ |
(2 |
) |
|
$ |
(1 |
) |
|
$ |
12 |
|
Loans held for investment |
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
| Assets measured at fair value on a nonrecurring basis |
assets measured at fair value on a nonrecurring basis were as follows:
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Fair Value Measurements Using |
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(dollar amounts in millions) |
Fair Value |
|
Quoted Prices
In Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
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Significant
Other
Unobservable
Inputs
(Level 3)
|
|
Total
Gains/(Losses)
Nine Months Ended
September 30, 2018
|
Impaired loans |
53 |
|
|
— |
|
|
— |
|
|
53 |
|
|
1 |
|
Other real estate owned |
27 |
|
|
— |
|
|
— |
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|
27 |
|
|
(1 |
) |
|
| Quantitative information about significant unobservable level 3 fair value measurement inputs |
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Quantitative Information about Level 3 Fair Value Measurements at September 30, 2018 |
(dollar amounts in millions) |
Fair Value |
|
Valuation Technique |
|
Significant Unobservable Input |
|
Range (Weighted Average) |
Measured at fair value on a recurring basis: |
MSRs |
$ |
11 |
|
|
Discounted cash flow |
|
Constant prepayment rate |
|
6% - 54% (8%) |
|
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|
|
|
|
Spread over forward interest rate
swap rates |
|
5% - 11% (8%) |
|
Derivative assets |
5 |
|
|
Consensus Pricing |
|
Net market price |
|
-4%-8%(1%) |
|
|
|
|
|
|
Estimated Pull through % |
|
3% - 100% (91%) |
|
Derivative liabilities |
4 |
|
|
Discounted cash flow |
|
Estimated conversion factor |
|
163 |
% |
|
|
|
|
|
Estimated growth rate of Visa Class A shares |
|
7 |
% |
|
|
|
|
|
Discount rate |
|
3 |
% |
|
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|
|
|
Timing of the resolution of the litigation |
|
6/30/2020 |
|
Municipal securities |
3,277 |
|
|
Discounted cash flow |
|
Discount rate |
|
3% - 4% (3%) |
|
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|
|
|
|
Cumulative default |
|
0% - 64% (4%) |
|
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|
|
Loss given default |
|
5% - 90% (25%) |
|
Loans held for investment |
32 |
|
|
Discounted cash flow |
|
Discount rate |
|
7% (7%) |
|
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|
|
|
|
Constant prepayment rate |
|
9% (9%) |
|
Measured at fair value on a nonrecurring basis: |
Impaired loans |
53 |
|
|
Appraisal value |
|
NA |
|
NA |
|
Other real estate owned |
27 |
|
|
Appraisal value |
|
NA |
|
NA |
|
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Quantitative Information about Level 3 Fair Value Measurements at December 31, 2017 |
(dollar amounts in millions) |
Fair Value |
|
Valuation Technique |
|
Significant Unobservable Input |
|
Range (Weighted Average) |
Measured at fair value on a recurring basis: |
MSRs |
$ |
11 |
|
|
Discounted cash flow |
|
Constant prepayment rate |
|
8% - 33% (12%) |
|
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|
|
|
Spread over forward interest rate
swap rates |
|
8% - 10% (8%) |
Derivative assets |
6 |
|
|
Consensus Pricing |
|
Net market price |
|
-5% - 20% (2%) |
|
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|
|
|
Estimated Pull through % |
|
3% - 100% (75%) |
Derivative liabilities |
5 |
|
|
Discounted cash flow |
|
Estimated conversion factor |
|
165% |
|
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|
|
|
Estimated growth rate of Visa Class A shares |
|
7% |
|
|
|
|
|
Discount rate |
|
3% |
|
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|
|
Timing of the resolution of the litigation |
|
12/31/2017 - 06/30/2020 |
Municipal securities |
3,167 |
|
|
Discounted cash flow |
|
Discount rate |
|
0% - 10% (4%) |
|
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|
|
|
Cumulative default |
|
0% - 64% (3%) |
|
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|
|
|
Loss given default |
|
5% - 90% (24%) |
Asset-backed securities |
24 |
|
|
Discounted cash flow |
|
Discount rate |
|
7% - 7% (7%) |
|
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|
|
|
Cumulative prepayment rate |
|
0% - 72% (7%) |
|
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|
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|
Cumulative default |
|
3% - 53% (7%) |
|
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|
Loss given default |
|
90% - 100% (98%) |
|
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|
|
|
Cure given deferral |
|
50% - 50% (50%) |
Loans held for investment |
38 |
|
|
Discounted cash flow |
|
Discount rate |
|
7% - 18% (8%) |
|
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|
|
|
Constant prepayment rate |
|
2% - 22% (9%) |
Measured at fair value on a nonrecurring basis: |
MSRs |
190 |
|
|
Discounted cash flow |
|
Constant prepayment rate |
|
6% - 21% (8%) |
|
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|
|
|
Spread over forward interest rate
swap rates |
|
2% - 20% (10%) |
Impaired loans |
36 |
|
|
Appraisal value |
|
NA |
|
NA |
Other real estate owned |
33 |
|
|
Appraisal value |
|
NA |
|
NA |
|
| Carrying amounts and estimated fair values of financial instruments |
The following table provides the carrying amounts and estimated fair values of Huntington’s financial instruments at September 30, 2018 and December 31, 2017:
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September 30, 2018 |
(dollar amounts in millions) |
Amortized Cost |
|
Lower of Cost or Market |
|
Fair Value or
Fair Value Option
|
|
Total Carrying Amount |
|
Estimated Fair Value |
Financial Assets |
|
|
|
|
|
|
|
|
|
Cash and short-term assets |
1,342 |
|
|
— |
|
|
— |
|
|
1,342 |
|
|
1,342 |
|
Trading account securities |
— |
|
|
— |
|
|
83 |
|
|
83 |
|
|
83 |
|
Available-for-sale securities |
— |
|
|
— |
|
|
13,727 |
|
|
13,727 |
|
|
13,727 |
|
Held-to-maturity securities |
8,465 |
|
|
— |
|
|
— |
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|
8,465 |
|
|
8,112 |
|
Other securities |
543 |
|
|
— |
|
|
22 |
|
|
565 |
|
|
565 |
|
Loans held for sale |
— |
|
|
65 |
|
|
727 |
|
|
792 |
|
|
795 |
|
Net loans and direct financing leases (1) |
72,528 |
|
|
— |
|
|
81 |
|
|
72,609 |
|
|
71,918 |
|
Derivatives |
— |
|
|
— |
|
|
180 |
|
|
180 |
|
|
180 |
|
Financial Liabilities |
|
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|
|
|
|
|
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|
Deposits |
81,689 |
|
|
— |
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|
— |
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|
81,689 |
|
|
81,631 |
|
Short-term borrowings |
1,348 |
|
|
— |
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|
— |
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|
1,348 |
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|
1,348 |
|
Long-term debt |
9,385 |
|
|
— |
|
|
— |
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|
9,385 |
|
|
9,523 |
|
Derivatives |
— |
|
|
— |
|
|
220 |
|
|
220 |
|
|
220 |
|
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|
(1) |
Includes collateral-dependent loans measured for impairment. |
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|
December 31, 2017 |
(dollar amounts in millions) |
Amortized Cost |
|
Lower of Cost or Market |
|
Fair Value or
Fair Value Option
|
|
Total Carrying Amount |
|
Estimated Fair Value |
Financial Assets |
|
|
|
|
|
|
|
|
|
Cash and short-term assets |
1,567 |
|
|
— |
|
|
— |
|
|
$ |
1,567 |
|
|
$ |
1,567 |
|
Trading account securities |
— |
|
|
— |
|
|
86 |
|
|
86 |
|
|
86 |
|
Available-for-sale securities |
— |
|
|
— |
|
|
14,869 |
|
|
14,869 |
|
|
14,869 |
|
Held-to-maturity securities |
9,091 |
|
|
— |
|
|
— |
|
|
9,091 |
|
|
8,971 |
|
Other securities |
581 |
|
|
— |
|
|
19 |
|
|
600 |
|
|
600 |
|
Loans held for sale |
— |
|
|
75 |
|
|
413 |
|
|
488 |
|
|
491 |
|
Net loans and direct financing leases (1) |
69,333 |
|
|
— |
|
|
93 |
|
|
69,426 |
|
|
69,146 |
|
Derivatives |
— |
|
|
— |
|
|
132 |
|
|
132 |
|
|
132 |
|
Financial Liabilities |
|
|
|
|
|
|
|
|
|
Deposits |
77,041 |
|
|
— |
|
|
— |
|
|
77,041 |
|
|
77,010 |
|
Short-term borrowings |
5,056 |
|
|
— |
|
|
— |
|
|
5,056 |
|
|
5,056 |
|
Long-term debt |
9,206 |
|
|
— |
|
|
— |
|
|
9,206 |
|
|
9,402 |
|
Derivatives |
— |
|
|
— |
|
|
86 |
|
|
86 |
|
|
86 |
|
|
|
(1) |
Includes collateral-dependent loans measured for impairment. |
The following table presents the level in the fair value hierarchy for the estimated fair values at September 30, 2018 and December 31, 2017:
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|
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Estimated Fair Value Measurements at Reporting Date Using |
|
September 30, 2018 |
(dollar amounts in millions) |
Level 1 |
|
Level 2 |
|
Level 3 |
|
Financial Assets |
|
|
|
|
|
|
|
Trading account securities |
$ |
77 |
|
|
$ |
6 |
|
|
$ |
— |
|
|
$ |
83 |
|
Available-for-sale securities |
5 |
|
|
10,445 |
|
|
3,277 |
|
|
13,727 |
|
Held-to-maturity securities |
— |
|
|
8,112 |
|
|
— |
|
|
8,112 |
|
Other securities |
22 |
|
|
— |
|
|
— |
|
|
22 |
|
Loans held for sale |
— |
|
|
727 |
|
|
68 |
|
|
795 |
|
Net loans and direct financing leases |
— |
|
|
49 |
|
|
71,869 |
|
|
71,918 |
|
Financial Liabilities |
|
|
|
|
|
|
|
Deposits |
— |
|
|
74,423 |
|
|
7,208 |
|
|
81,631 |
|
Short-term borrowings |
2 |
|
|
— |
|
|
1,346 |
|
|
1,348 |
|
Long-term debt |
— |
|
|
8,986 |
|
|
537 |
|
|
9,523 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Estimated Fair Value Measurements at Reporting Date Using |
|
December 31, 2017 |
(dollar amounts in millions) |
Level 1 |
|
Level 2 |
|
Level 3 |
|
Financial Assets |
|
|
|
|
|
|
|
Trading account securities |
$ |
83 |
|
|
$ |
3 |
|
|
$ |
— |
|
|
$ |
86 |
|
Available-for-sale securities |
5 |
|
|
11,673 |
|
|
3,191 |
|
|
14,869 |
|
Held-to-maturity securities |
— |
|
|
8,971 |
|
|
— |
|
|
8,971 |
|
Other securities |
19 |
|
|
— |
|
|
— |
|
|
19 |
|
Loans held for sale |
— |
|
|
413 |
|
|
78 |
|
|
491 |
|
Net loans and direct financing leases |
— |
|
|
— |
|
|
69,146 |
|
|
69,146 |
|
Financial Liabilities |
|
|
|
|
|
|
|
Deposits |
— |
|
|
73,975 |
|
|
3,035 |
|
|
77,010 |
|
Short-term borrowings |
— |
|
|
— |
|
|
5,056 |
|
|
5,056 |
|
Long-term debt |
— |
|
|
8,944 |
|
|
458 |
|
|
9,402 |
|
|