v3.26.1
Fair Value Option
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Option Fair Value Option
The Corporation elects to account for certain financial instruments under the fair value option. For more information on the primary financial instruments for which the fair value option elections have been made, see Note 21 – Fair Value Option to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K. The following tables provide
information about the fair value carrying amount and the contractual principal outstanding of assets and liabilities accounted for under the fair value option at June 30, 2026 and December 31, 2025, and information about where changes in the fair value of assets and liabilities accounted for under the fair value option are included in the Consolidated Statement of Income for the three and six months ended June 30, 2026 and 2025.





Fair Value Option Elections
June 30, 2026December 31, 2025
(Dollars in millions)
Fair Value
 Carrying
 Amount		Contractual
 Principal
 Outstanding		Fair Value
Carrying
Amount Less
 Unpaid Principal		Fair Value
Carrying
Amount		Contractual
 Principal
 Outstanding		Fair Value
Carrying
  Amount Less
 Unpaid Principal
Federal funds sold and securities borrowed or purchased under agreements to resell
$217,206 $217,164 $42 $185,491 $185,324 $167 
Loans reported as trading account assets (1)
8,536 22,581 (14,045)10,230 24,475 (14,245)
Trading inventory – other10,692 n/an/a16,791 n/an/a
Consumer and commercial loans3,359 3,454 (95)3,498 3,594 (96)
Loans held-for-sale (1)
3,842 4,440 (598)2,271 2,868 (597)
Other assets4,294 n/an/a4,054 n/an/a
Long-term deposits1,828 1,849 (21)1,223 1,385 (162)
Federal funds purchased and securities loaned or sold under agreements to repurchase
223,698 223,729 (31)223,067 223,087 (20)
Short-term borrowings11,431 11,433 (2)8,051 8,046 5 
Unfunded loan commitments108 n/an/a67 n/an/a
Accrued expenses and other liabilities2,409 2,400 9 3,767 3,628 139 
Long-term debt84,797 86,837 (2,040)72,591 76,534 (3,943)
(1)    A significant portion of the loans reported as trading account assets and LHFS are distressed loans that were purchased at a deep discount to par, and the remainder are loans with a fair value near contractual principal outstanding.
n/a = not applicable
Gains (Losses) Related to Assets and Liabilities Accounted for Under the Fair Value Option
Three Months Ended June 30
20262025
(Dollars in millions)Market making
 and similar
 activities		Other
Income		TotalMarket making
 and similar
 activities		Other
Income		Total
Federal funds sold and securities borrowed or purchased under agreements to resell$(71)$(2)$(73)$189 $(1)$188 
Loans reported as trading account assets(21)1 (20)60 3 63 
Trading inventory – other (1)
1,807 — 1,807 127 — 127 
Consumer and commercial loans142 6 148 63 (3)60 
Loans held-for-sale (2)
— 6 6 — 17 17 
Short-term borrowings(390)— (390)28 — 28 
Unfunded loan commitments— (39)(39)— (11)(11)
Accrued expenses and other liabilities(16)(95)(111)1 (9)(8)
Long-term debt (3)
(709)(6)(715)(622)(6)(628)
Other (4)
23 (12)11 (160)(159)(319)
Total$765 $(141)$624 $(314)$(169)$(483)
Six Months Ended June 30
20262025
Federal funds sold and securities borrowed or purchased under agreements to resell$(160)$(4)$(164)$323 $(3)$320 
Loans reported as trading account assets246 2 248 172 3 175 
Trading inventory – other (1)
(708)— (708)1,834 — 1,834 
Consumer and commercial loans279 (10)269 81 (2)79 
Loans held-for-sale (2)
— (26)(26)— 77 77 
Short-term borrowings(235)— (235)69 — 69 
Unfunded loan commitments— (40)(40)— (20)(20)
Accrued expenses and other liabilities3 (190)(187)(6)(9)(15)
Long-term debt (3)
(1,748)(16)(1,764)(877)(18)(895)
Other (4)
61 (38)23 (275)(169)(444)
Total$(2,262)$(322)$(2,584)$1,321 $(141)$1,180 
(1)    The gains (losses) in market making and similar activities are primarily offset by (losses) gains on trading liabilities that hedge these assets.
(2)    Includes the value of IRLCs on funded loans, including those sold during the period.
(3)    The net gains (losses) in market making and similar activities relate to the embedded derivatives in structured liabilities and are typically offset by (losses) gains on derivatives and securities that hedge these liabilities. For the cumulative impact of changes in the Corporation’s own credit spreads and the amount recognized in accumulated OCI, see Note 12 – Accumulated Other Comprehensive Income (Loss). For more information on how the Corporation’s own credit spread is determined, see Note 20 – Fair Value Measurements to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.
(4)    Includes gains (losses) on other assets, long-term deposits and federal funds purchased and securities loaned or sold under agreements to repurchase.
Gains (Losses) Related to Borrower-specific Credit Risk for Assets and Liabilities Accounted for Under the Fair Value Option
Three Months Ended June 30Six Months Ended June 30
(Dollars in millions)2026202520262025
Loans reported as trading account assets$(21)$(47)$(107)$113 
Consumer and commercial loans6 (2)(10)(2)
Loans held-for-sale4 6 (13)7 
Unfunded loan commitments(39)(11)(40)(20)