Fair Value Disclosures (Tables)

6 Months Ended

Jun. 30, 2026

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present fair value information for assets and liabilities measured at fair value on a recurring basis:


June 30, 2026 (Dollars in millions)	Total		Level 1		Level 2		Level 3		Netting Adjustments(1)
Assets:
Trading assets:
U.S. Treasury	$	119	$	—	$	119	$	—	$	—
GSE	37		—		37		—		—
States and political subdivisions	265		—		265		—		—
Corporate and other debt securities	1,792		—		1,792		—		—
Loans	1,931		—		1,931		—		—
Equity securities	1,144		1,144		—		—		—

Total trading assets	5,288		1,144		4,144		—		—
AFS securities:
U.S. Treasury	13,313		—		13,313		—		—
GSE	436		—		436		—		—
Agency MBS – residential	49,152		—		49,152		—		—
Agency MBS – commercial	3,126		—		3,126		—		—
States and political subdivisions	341		—		341		—		—
Collateralized loan obligations	1,279		—		1,279		—		—
Other	4		—		4		—		—
Total AFS securities	67,651		—		67,651		—		—
LHFS	2,198		—		2,198		—		—
Loans and leases	10		—		—		10		—
Loan servicing rights at fair value	4,293		—		—		4,293		—
Other assets:
Derivative assets	1,455		1,579		2,060		5		(2,189)
Equity securities	378		301		77		—		—
Other	8		—		8		—		—
Total assets	$	81,281	$	3,024	$	76,138	$	4,308	$	(2,189)
Liabilities:
Interest-bearing deposits:
Brokered time deposits	$	688	$	—	$	688	$	—	$	—
Short-term borrowings:
Securities sold short	2,979		1,502		1,477		—		—
Other trading liabilities	142		—		142		—		—
Other liabilities:
Derivative Liabilities	2,228		836		4,472		23		(3,103)
Total liabilities	$	6,037	$	2,338	$	6,779	$	23	$	(3,103)


December 31, 2025 (Dollars in millions)	Total		Level 1		Level 2		Level 3		Netting Adjustments(1)
Assets:
Trading assets:
U.S. Treasury	$	244	$	—	$	244	$	—	$	—
GSE	42		—		42		—		—
States and political subdivisions	301		—		301		—		—
Corporate and other debt securities	1,970		—		1,970		—		—
Loans	2,168		—		2,168		—		—
Equity securities	1,065		1,065		—		—		—

Total trading assets	5,790		1,065		4,725		—		—
AFS securities:
U.S. Treasury	12,792		—		12,792		—		—
GSE	460		—		460		—		—
Agency MBS – residential	48,226		—		48,226		—		—
Agency MBS – commercial	3,200		—		3,200		—		—
States and political subdivisions	350		—		350		—		—

Other	14		—		14		—		—
Total AFS securities	65,042		—		65,042		—		—
LHFS	1,622		—		1,622		—		—
Loans and leases	11		—		—		11		—
Loan servicing rights at fair value	3,972		—		—		3,972		—
Other assets:
Derivative assets	1,343		1,157		1,961		4		(1,779)
Equity securities	382		293		89		—		—

Total assets	$	78,162	$	2,515	$	73,439	$	3,987	$	(1,779)
Liabilities:
Interest-bearing deposits:
Brokered time deposits	$	639	$	—	$	639	$	—	$	—
Short-term borrowings:
Securities sold short	2,185		652		1,533		—		—
Other trading liabilities	209		—		209		—		—
Other liabilities:
Derivative liabilities	1,797		623		3,959		33		(2,818)
Total liabilities	$	4,830	$	1,275	$	6,340	$	33	$	(2,818)

(1)Refer to “Note 14. Derivative Financial Instruments” for additional discussion on netting adjustments.

Rollforward of Level 3 Assets and Liabilities

Activity for Level 3 assets and liabilities is summarized below:


(Dollars in millions)	Loans and Leases		Loan Servicing Rights		Net Derivatives
Balance at April 1, 2025	$	12	$	3,628	$	(33)
Total realized and unrealized gains (losses):
Included in earnings	—		27		2

Issuances	—		54		13

Settlements	—		(97)		(2)


Balance at June 30, 2025	12		3,612		(20)
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at June 30, 2025	$	—	$	27	$	4
Balance at April 1, 2026	$	10	$	4,112	$	(35)
Total realized and unrealized gains (losses):
Included in earnings	—		35		2
Purchases	—		144		—
Issuances	—		116		—

Settlements	—		(114)		15


Balance at June 30, 2026	10		4,293		(18)
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at June 30, 2026	$	—	$	35	$	11


(Dollars in millions)	Loans and Leases		Loan Servicing Rights		Net Derivatives










Balance at January 1, 2025	$	13	$	3,708	$	(41)
Total realized and unrealized gains (losses):
Included in earnings	—		(29)		8

Issuances	—		111		17

Settlements	(1)		(178)		(4)


Balance at June 30, 2025	$	12	$	3,612	$	(20)
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at June 30, 2025	$	—	$	(29)	$	1
Balance at January 1, 2026	$	11	$	3,972	$	(29)
Total realized and unrealized gains (losses):
Included in earnings	—		51		3
Purchases	—		275		—
Issuances	—		209		(17)

Settlements	(1)		(214)		25


Balance at June 30, 2026	$	10	$	4,293	$	(18)
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at June 30, 2026	$	—	$	51	$	—
Primary income statement location of realized gains (losses) included in earnings	Other income		Mortgage banking income		Mortgage banking income and other income

Fair Value and UPB of LHFS

The following table details the fair value and UPB of certain loans and time deposits that were elected to be measured at fair value:


	June 30, 2026						December 31, 2025
(Dollars in millions)	Fair Value		UPB		Difference		Fair Value		UPB		Difference
Trading loans	$	1,931	$	1,995	$	(64)	$	2,168	$	2,230	$	(62)
LHFS	2,198		2,173		25		1,622		1,592		30
Loans and leases	10		11		(1)		11		12		(1)
Brokered time deposits	688		697		(9)		639		642		(3)

Assets Measured at Fair Value on a Nonrecurring Basis

The following table provides information about certain assets measured at fair value on a nonrecurring basis held as of period end with valuation adjustments recorded during the period. The carrying values represent end of period values, which approximate the fair value.


(Dollars in millions)	Fair Value Hierarchy	Jun 30, 2026		Dec 31, 2025
Carrying value:

LHFS	Level 3	$	204	$	4
Loans and leases(1)	Level 3	297		468
Other	Level 3	46		65

(1)Total loans and leases measured at fair value on a nonrecurring basis still held as of period end were $516 million and $599 million at June 30, 2026 and December 31, 2025, respectively.

The following table provides information about valuation adjustments for certain assets measured at fair value on a nonrecurring basis. The valuation adjustments represent the amounts recorded during the period regardless of whether the asset is still held at period end.


	Six Months Ended June 30,
(Dollars in millions)	2026		2025
Valuation adjustments:
LHFS	$	(58)	$	(68)
Loans and leases	(444)		(420)
Other	(113)		(148)

Carrying Amounts and Fair Value of Financial Assets and Liabilities Not Recorded at Fair Value

Financial assets and liabilities not recorded at fair value are summarized below:


		June 30, 2026				December 31, 2025
(Dollars in millions)	Fair Value Hierarchy	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
HTM securities	Level 2	$	46,351	$	38,145	$	47,186	$	39,130
Loans and leases, net of ALLL	Level 3	324,803		320,888		323,554		320,018
Financial liabilities:
Time deposits	Level 2	40,241		40,064		37,793		37,723
Long-term debt	Level 2	42,976		43,400		41,963		42,451

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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