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Notes to Consolidated Financial Statements, continued
137
The following tables present the change in fair value during the
years ended December 31, 2015, 2014, and 2013 of financial
instruments for which the FVO has been elected, as well as for
MSRs. The tables do not reflect the change in fair value
attributable to related economic hedges the Company uses to
mitigate the market-related risks associated with the financial
instruments. Generally, changes in the fair value of economic
hedges are recognized in trading income, mortgage production
related income, mortgage servicing related income, or other
noninterest income as appropriate, and are designed to partially
offset the change in fair value of the financial instruments
referenced in the tables below. The Company’s economic
hedging activities are deployed at both the instrument and
portfolio level.
Fair Value (Loss)/Gain for the Year Ended
December 31, 2015 for Items Measured at Fair Value
Pursuant to Election of the FVO
(Dollars in millions)
Trading
Income
Mortgage
Production
Related
Income 1
Mortgage
Servicing
Related
Income
Other
Noninterest
Income
Total
Changes
in Fair Values
Included in
Earnings 2
Assets:
Trading loans ($1) $— $— $— ($1)
LHFS — 44 — — 44
LHFI — — — 5 5
MSRs — 2 (242) — (240)
Liabilities:
Long-term debt 41 — — — 41
1 Income related to LHFS does not include income from IRLCs. For the year ended December 31, 2015, income related to MSRs includes income recognized upon the sale of loans
reported at LOCOM.
2 Changes in fair value for the year ended December 31, 2015 exclude accrued interest for the period then ended. Interest income or interest expense on trading loans, LHFS, LHFI, and
long-term debt that have been elected to be measured at fair value are recognized in interest income or interest expense in the Consolidated Statements of Income.
Fair Value Gain/(Loss) for the Year Ended
December 31, 2014 for Items Measured at Fair Value
Pursuant to Election of the FVO
(Dollars in millions)
Trading
Income
Mortgage
Production
Related
Income 1
Mortgage
Servicing
Related
Income
Total Changes
in Fair Values
Included in
Earnings 2
Assets:
Trading loans $11 $— $— $11
LHFS — 3 — 3
LHFI — 11 — 11
MSRs — 3 (401) (398)
Liabilities:
Brokered time deposits 6 — — 6
Long-term debt 17 — — 17
1 Income related to LHFS does not include income from IRLCs. For the year ended December 31, 2014, income related to MSRs includes income recognized upon the sale of loans
reported at LOCOM.
2 Changes in fair value for the year ended December 31, 2014 exclude accrued interest for the period then ended. Interest income or interest expense on trading loans, LHFS, LHFI,
brokered time deposits, and long-term debt that have been elected to be measured at fair value are recognized in interest income or interest expense in the Consolidated Statements of
Income.