Quarterly report pursuant to Section 13 or 15(d)

Fair Value of Financial Instruments

v3.7.0.1
Fair Value of Financial Instruments
6 Months Ended
Jun. 30, 2017
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments
Fair Value of Financial Instruments
Financial instruments are classified into three levels based on the established fair value hierarchy. For additional information, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation's 2016 Annual Report on Form 10-K. The following disclosures include financial instruments that are not carried at fair value or only a portion of the ending balance at June 30, 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 June 30, 2017 and December 31, 2016 are presented in the following table.
 
 
 
 
 
 
 
 
Fair Value of Financial Instruments
 
 
 
 
 
 
 
 
 
June 30, 2017
 
 
 
Fair Value
(Dollars in millions)
Carrying Value
 
Level 2
 
Level 3
 
Total
Financial assets
 
 
 
 
 
 
 
Loans
$
884,114

 
$
64,888

 
$
827,122

 
$
892,010

Loans held-for-sale
5,882

 
4,867

 
1,015

 
5,882

Financial liabilities
 
 
 
 
 
 
 
Deposits
1,262,980

 
1,263,010

 

 
1,263,010

Long-term debt
223,923

 
229,134

 
1,646

 
230,780

 
 
 
 
 
 
 
 
 
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 credit default swaps 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 $895 million and $4.2 billion at June 30, 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.