Quarterly report pursuant to Section 13 or 15(d)

Fair Value of Financial Instruments

v3.7.0.1
Fair Value of Financial Instruments
3 Months Ended
Mar. 31, 2017
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments
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 that are not carried at fair value or only a portion of the ending balance at March 31, 2017 and December 31, 2016 is 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 2016 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, 2017 and December 31, 2016 are presented in the table below.
 
 
 
 
 
 
 
 
Fair Value of Financial Instruments
 
 
 
 
 
 
 
 
 
March 31, 2017
 
 
 
Fair Value
(Dollars in millions)
Carrying Value
 
Level 2
 
Level 3
 
Total
Financial assets
 
 
 
 
 
 
 
Loans
$
873,392

 
$
71,273

 
$
817,029

 
$
888,302

Loans held-for-sale
14,751

 
13,682

 
1,069

 
14,751

Financial liabilities
 
 
 
 
 
 
 
Deposits
1,272,141

 
1,272,197

 

 
1,272,197

Long-term debt
221,385

 
225,424

 
1,660

 
227,084

 
 
 
 
 
 
 
 
 
December 31, 2016
Financial assets
 
 
 
 
 
 
 
Loans
$
873,209

 
$
71,793

 
$
815,329

 
$
887,122

Loans held-for-sale
9,066

 
8,082

 
984

 
9,066

Financial liabilities
 

 
 
 
 
 
 

Deposits
1,260,934

 
1,261,086

 

 
1,261,086

Long-term debt
216,823

 
220,071

 
1,514

 
221,585


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 $893 million and $4.3 billion at March 31, 2017, and $937 million and $4.9 billion at December 31, 2016. 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.