Quarterly report pursuant to Section 13 or 15(d)

Fair Value of Financial Instruments

v3.4.0.3
Fair Value of Financial Instruments
3 Months Ended
Mar. 31, 2016
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 March 31, 2016 and December 31, 2015 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 2015 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 March 31, 2016 and December 31, 2015 are presented in the table below.

Fair Value of Financial Instruments
 
March 31, 2016
 
December 31, 2015
 
 
 
Fair Value
 
 
 
Fair Value
(Dollars in millions)
Carrying
Value
 
Level 2
 
Level 3
 
Total
 
Carrying
Value
 
Level 2
 
Level 3
 
Total
Financial assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans
$
868,220

 
$
70,644

 
$
814,209

 
$
884,853

 
$
863,561

 
$
70,223

 
$
805,371

 
$
875,594

Loans held-for-sale
6,192

 
5,221

 
971

 
6,192

 
7,453

 
5,347

 
2,106

 
7,453

Financial liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits
$
1,217,261

 
$
1,217,625

 
$

 
$
1,217,625

 
$
1,197,259

 
$
1,197,577

 
$

 
$
1,197,577

Long-term debt
232,849

 
233,863

 
1,814

 
235,677

 
236,764

 
239,596

 
1,513

 
241,109



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 $1.1 billion and $5.9 billion at March 31, 2016, and $1.3 billion and $6.3 billion at December 31, 2015. 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.