Quarterly report pursuant to Section 13 or 15(d)

Fair Value of Financial Instruments

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Fair Value of Financial Instruments
9 Months Ended
Sep. 30, 2015
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments
NOTE 16 – Fair Value of Financial Instruments

Financial instruments are classified within the fair value hierarchy using the methodologies described in Note 14 – Fair Value Measurements. The following disclosures include financial instruments where only a portion of the ending balance at September 30, 2015 and December 31, 2014 was carried at fair value on the Consolidated Balance Sheet. For more information on these financial instruments and their valuation methodologies, see Note 20 – Fair Value Measurements and Note 22 – Fair Value of Financial Instruments to the Consolidated Financial Statements of the Corporation's 2014 Annual Report on Form 10-K.

Fair Value of Financial Instruments

The carrying values and fair values by fair value hierarchy of certain financial instruments where only a portion of the ending balance was carried at fair value at September 30, 2015 and December 31, 2014 are presented in the table below.

Fair Value of Financial Instruments
 
September 30, 2015
 
December 31, 2014
 
 
 
Fair Value
 
 
 
Fair Value
(Dollars in millions)
Carrying
Value
 
Level 2
 
Level 3
 
Total
 
Carrying
Value
 
Level 2
 
Level 3
 
Total
Financial assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans
$
849,512

 
$
69,998

 
$
794,716

 
$
864,714

 
$
842,259

 
$
87,174

 
$
776,370

 
$
863,544

Loans held-for-sale
8,842

 
8,007

 
835

 
8,842

 
12,836

 
12,236

 
618

 
12,854

Financial liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits
$
1,162,009

 
$
1,162,465

 
$

 
$
1,162,465

 
$
1,118,936

 
$
1,119,427

 
$

 
$
1,119,427

Long-term debt
237,288

 
240,356

 
1,910

 
242,266

 
243,139

 
249,692

 
2,362

 
252,054



Commercial Unfunded Lending Commitments

Fair values were generally determined using a discounted cash flow valuation approach which is applied using market-based CDS or internally developed benchmark credit curves. The Corporation accounts for certain loan commitments under the fair value option.

The carrying values and fair values of the Corporation's commercial unfunded lending commitments were $1.3 billion and $5.0 billion at September 30, 2015, and $932 million and $3.8 billion at December 31, 2014. Commercial unfunded lending commitments are primarily classified as Level 3. The carrying value of these commitments is classified in accrued expenses and other liabilities.

The Corporation does not estimate the fair values of consumer unfunded lending commitments because, in many instances, the Corporation can reduce or cancel these commitments by providing notice to the borrower. For more information on commitments, see Note 10 – Commitments and Contingencies.