v3.25.4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 12 Months Ended
Dec. 31, 2025
Summary of Derivative Instruments [Abstract]  
Schedule of Derivative Amounts
The following schedule presents derivative notional amounts and recorded gross fair values at December 31, 2025 and 2024:
December 31, 2025December 31, 2024
Notional
amount		Fair valueNotional
amount		Fair value
(In millions)Other
assets		Other
liabilities		Other
assets		Other
liabilities
Derivatives designated as hedging instruments:
Cash flow hedges:
Hedges of floating-rate assets 1
$2,750 $7 $1 $550 $— $2 
Hedges of floating-rate liabilities— — — 500 — — 
Fair value hedges:
Hedges of fixed-rate assets 1
7,653 79 — 4,668 93 — 
Hedges of fixed-rate liabilities1,000 — — 500 — — 
Total derivatives designated as accounting hedges11,403 86 1 6,218 93 2 
Derivatives not designated as accounting hedges: 2
Customer interest rate derivatives22,428 251 241 16,833 348 346 
Customer commodity derivatives853 18 17 — — — 
Other interest rate derivatives 4
5,571 2 — 1,105 1 — 
Foreign exchange derivatives 3
308 3 1 373 4 2 
Purchased credit derivatives64 — — 24 — — 
Total derivatives not designated as accounting hedges
29,224 274 259 18,335 353 348 
Total derivatives$40,627 $360 $260 $24,553 $446 $350 
1 Includes forward-starting swaps that are not yet effective.
2 Notional amounts and fair values for derivatives that are not designated as accounting hedges include both the customer-facing derivatives the Bank executes to assist customers in managing their risks and the offsetting dealer-facing derivatives that economically mirror the corresponding customer transactions to mitigate the Bank's exposure.
3 Includes both spot and forward FX trades.
4 Other interest rate derivatives at December 31, 2025 include certain short-dated interest rate futures used as economic hedges of floating-rate loans that are not designated as hedges for accounting purposes.
Schedule of Derivative Gains (Losses) Deferred in OCI or Recognized in Earnings
The following schedules present the gains and losses from derivative instruments designated as cash flow and fair value hedges, either deferred in AOCI or recognized in earnings for years ended December 31, 2025 and 2024:
Year Ended December 31, 2025
(In millions)Effective portion of derivative gain/(loss) deferred in AOCIAmount of gain/(loss) reclassified from AOCI into incomeInterest on fair
value hedges		Hedge ineffectiveness / AOCI reclass due to missed forecast
Cash flow hedges: 1
Hedges of floating-rate assets$7 $(66)$— $— 
Hedges of floating-rate liabilities— 1 — — 
Fair value hedges: 2
Hedges of fixed-rate assets— — 52 — 
Hedges of fixed-rate liabilities— — (11)— 
Total derivatives designated as accounting hedges
$7 $(65)$41 $— 
Year Ended December 31, 2024
(In millions)Effective portion of derivative gain/(loss) deferred in AOCIAmount of gain/(loss) reclassified from AOCI into incomeInterest on fair
value hedges		Hedge ineffectiveness / AOCI reclass due to missed forecast
Cash flow hedges: 1
Hedges of floating-rate assets$(8)$(126)$— $— 
Hedges of floating-rate liabilities4 8 — — 
Fair value hedges: 2
Hedges of fixed-rate assets— — 88 (1)
Hedges of fixed-rate liabilities— — (8)— 
Total derivatives designated as accounting hedges
$(4)$(118)$80 $(1)
1 For the 12 months following December 31, 2025, we estimate that approximately $29 million of net losses from both active and terminated cash flow hedges will be reclassified from AOCI into interest income, compared with an estimate of $63 million at December 31, 2024. At December 31, 2025, approximately $37 million in losses related to terminated cash flow hedges remained deferred in AOCI, which are expected to be fully reclassified into earnings by October 2027.
2 We recorded cumulative unamortized basis adjustments from terminated fair value hedges of debt totaling $32 million and $39 million at December 31, 2025 and 2024, respectively. Additionally, we had $3 million of cumulative unamortized basis adjustments from terminated fair value hedges of assets at both December 31, 2025 and 2024. Interest on fair value hedges presented above includes the amortization of the remaining unamortized basis adjustments.
Schedule of Gains (Losses) Recognized From Derivatives Not Designated As Accounting Hedges
The following schedule presents the amount of gains (losses) recognized in “Capital markets fees and income” under noninterest income from derivatives not designated as accounting hedges:
Other Noninterest Income/(Expense)
(In millions)20252024
Derivatives not designated as hedging instruments:
Customer-facing interest rate derivatives
$30 $30 
Customer-facing commodity derivatives
1 — 
Other interest rate derivatives 1
— 1 
Foreign exchange derivatives30 29 
Purchased credit derivatives(1)— 
Total derivatives not designated as hedging instruments
$60 $60 
1 This line also includes gains and losses from mortgage derivatives that were recorded in “Loan-related fees and income” under noninterest income.
Schedule of Fair Value Hedges
The following schedule presents derivatives used in fair value hedge accounting relationships, including the pre-tax gains and losses recorded on both the derivatives and the corresponding hedged item for the periods presented:
Gain/(loss) recorded in income
Twelve Months Ended
December 31, 2025		Twelve Months Ended
December 31, 2024
(In millions)
Derivatives 2
Hedged itemsTotal income statement impact
Derivatives 2
Hedged itemsTotal income statement impact
Hedges of fixed-rate assets 1, 2
$(109)$109 $— $108 $(109)$(1)
Hedges of fixed-rate liabilities 1, 2
16 (16)— (7)7 — 
1 Includes hedges of benchmark interest rate risk for fixed-rate long-term debt, AFS securities, and commercial loans. Gains and losses were recorded in interest expense or income consistent with the hedged items.
2 The income/expense for derivatives does not reflect interest income/expense from periodic accruals and payments to be consistent with the presentation of the gains/(losses) on the hedged items.
Schedule of Basis Adjustments for Hedged Items
The following schedule presents information regarding basis adjustments for hedged items in fair value hedging relationships:
Par value of hedged itemsCarrying amount of the hedged itemsCumulative amount of fair value hedging adjustment included in the carrying amount of the hedged items
(In millions)202520242025202420252024
Hedges of fixed-rate assets 1, 2
$11,566 $11,388 $11,383 $11,099 $(183)$(289)
Hedges of fixed-rate liabilities 1
(1,000)(500)(1,009)(493)(9)7 
1 Carrying amounts exclude (1) issuance and purchase discounts or premiums, (2) unamortized issuance and acquisition costs, and (3) amounts related to terminated fair value hedges.
2 Hedged items include defined portfolios of AFS securities and commercial loans, as well as specifically identified AFS securities. The related basis adjustments were recorded in the same balance-sheet lines as the associated hedged assets. At December 31, 2025, the amortized cost basis of assets designated under the portfolio layer method was $9.6 billion. The cumulative basis adjustment associated with these hedging relationships was $29 million, and the notional amounts of the designated hedging instruments totaled $5.7 billion.