v3.25.2
Derivatives and Hedging Activities (Tables)
 6 Months Ended
Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Assets at Fair Value
As of June 30, 2025 and December 31, 2024, the following amounts are reflected on the Consolidated Balance Sheet related to cumulative basis adjustments for outstanding fair value hedges:
June 30, 2025December 31, 2024
Carrying Value of Hedged Assets (1)Cumulative Fair Value Hedging Adjustment (2)Carrying Value of Hedged Assets (1)Cumulative Fair Value Hedging Adjustment (2)
(in millions)
Loans HFI, net of deferred loan fees and costs (3)$3,818 $(5)$4,320 $(96)
Investment securities - AFS2,130 40 — — 
(1)Represents the amortized cost basis of the hedged assets.
(2)Included in the carrying value of the hedged assets.
(3)Included portfolio layer method derivative instruments with $3.5 billion and $4.0 billion designated as the hedged amount (from a closed portfolio of prepayable fixed rate loans with a carrying value of $7.4 billion and $8.7 billion) as of June 30, 2025 and December 31, 2024, respectively. The cumulative basis adjustment included in the carrying value of these hedged items totaled $4 million and $78 million as of June 30, 2025 and December 31, 2024, respectively.
Derivative Instruments, Gain (Loss) For loans and AFS debt securities, the gain or loss on the hedged item is included in interest income, as shown in the table below.
Three Months Ended June 30,
20252024
Income Statement ClassificationGain/(Loss) on SwapsGain/(Loss) on Hedged ItemGain/(Loss) on SwapsGain/(Loss) on Hedged Item
(in millions)
Interest income on loans, including fees$(31.6)$31.6 $11.2 $(11.4)
Interest income on investment securities(38.4)40.2 — — 
Six Months Ended June 30,
20252024
Income Statement ClassificationGain/(Loss) on SwapsGain/(Loss) on Hedged ItemGain/(Loss) on SwapsGain/(Loss) on Hedged Item
(in millions)
Interest income on loans, including fees$(95.4)$95.5 $83.2 $(83.8)
Interest income on investment securities(38.4)40.2 — — 
The following table summarizes the net gain (loss) on derivatives included in the non-interest income line items below:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(in millions)
Net gain (loss) on loan origination and sale activities:
Interest rate lock commitments$10.8 $(2.3)$25.8 $(10.3)
Forward contracts(17.5)9.3 (73.0)26.0 
Interest rate contracts2.3 (0.7)2.3 (2.9)
Other contracts(0.1)0.2 3.4 0.9 
Net (loss) gain on derivatives$(4.5)$6.5 $(41.5)$13.7 
Net loan servicing revenue:
Forward contracts$(9.3)$(11.2)$(1.9)$(27.5)
Futures contracts(0.6)3.7 (6.4)14.4 
Interest rate contracts16.5 (16.7)42.8 (53.0)
Net gain (loss) on derivatives$6.6 $(24.2)$34.5 $(66.1)
Schedule of Fair Value of the Company's Derivative Instruments
The following table summarizes the fair value of the Company's derivative instruments on a gross basis as of June 30, 2025, December 31, 2024, and June 30, 2024. The change in the notional amounts of these derivatives from June 30, 2024 to June 30, 2025 indicates the volume of the Company's derivative transaction activity during these periods. The derivative asset and liability balances are presented on a gross basis, prior to the application of bilateral collateral and master netting agreements. Total derivative assets and liabilities are adjusted to take into account the impact of legally enforceable master netting agreements that allow the Company to settle all derivative contracts with the same counterparty on a net basis and to offset the net derivative position with the related cash collateral. Where master netting agreements are not in effect or are not enforceable under bankruptcy laws, the Company does not adjust those derivative amounts with counterparties.
 June 30, 2025December 31, 2024June 30, 2024
Fair ValueFair ValueFair Value
Notional
Amount		Derivative AssetsDerivative LiabilitiesNotional
Amount		Derivative AssetsDerivative LiabilitiesNotional
Amount		Derivative AssetsDerivative Liabilities
(in millions)
Derivatives designated as hedging instruments:
Fair value hedges
Interest rate contracts$6,033 $23 $56 $4,344 $97 $— $3,866 $78 $— 
Total$6,033 $23 $56 $4,344 $97 $— $3,866 $78 $— 
Derivatives not designated as hedging instruments:
Foreign currency contracts$109 $1 $2 $69 $1 $1 $93 $— $— 
Forward contracts24,687 63 111 21,731 81 48 14,514 13 24 
Futures contracts (1)15,690 — — 13,200 — — 8,544 — — 
Interest rate lock commitments2,947 24 — 2,396 5 7 2,781 10 2 
Interest rate contracts7,984 32 34 6,336 19 20 4,487 21 22 
Risk participation agreements226 — — 99 — — 74 — — 
Equity warrants63 33 — 59 30 — 59 22 — 
Total$51,706 $153 $147 $43,890 $136 $76 $30,552 $66 $48 
Margin— 347 (41)— 72 3 — 121 1 
Total, including margin$51,706 $500 $106 $43,890 $208 $79 $30,552 $187 $49 
(1)The Company enters into futures purchase and sales contracts that are subject to daily remargining and almost all of which are based on three-month SOFR to hedge against its MSR valuation exposure. The notional amount on these contracts is substantial as these contracts have a short duration and are intended to cover the longer duration of MSR hedges.
The fair value of derivative contracts, after taking into account the effects of master netting agreements, is included in Other assets or Other liabilities on the Consolidated Balance Sheet, as summarized in the table below:
June 30, 2025December 31, 2024June 30, 2024
Gross amount of recognized assets (liabilities)Gross offsetNet assets (liabilities)Gross amount of recognized assets (liabilities)Gross offsetNet assets (liabilities)Gross amount of recognized assets (liabilities)Gross offsetNet assets (liabilities)
(in millions)
Derivatives subject to master netting arrangements:
Assets
Foreign currency contracts$— $— $— $1 $— $1 $— $— $— 
Forward contracts63 — 63 81 — 81 13 — 13 
Interest rate contracts25 — 25 106 — 106 94 — 94 
Margin347 — 347 72 — 72 121 — 121 
Netting— (134)(134)— (52)(52)— (21)(21)
$435 $(134)$301 $260 $(52)$208 $228 $(21)$207 
Liabilities
Foreign currency contracts$(2)$— $(2)$— $— $— $— $— $— 
Forward contracts(108)— (108)(47)— (47)(22)— (22)
Interest rate contracts(78)— (78)(6)— (6)(4)— (4)
Margin41 — 41 (3)— (3)(1)— (1)
Netting— 134 134 — 52 52 — 21 21 
$(147)$134 $(13)$(56)$52 $(4)$(27)$21 $(6)
Derivatives not subject to master netting arrangements:
Assets
Foreign currency contracts$1 $— $1 $— $— $— $— $— $— 
Interest rate lock commitments24 — 24 5 — 5 10 — 10 
Interest rate contracts30 — 30 10 — 10 5 — 5 
Equity warrants33 — 33 30 — 30 22 — 22 
$88 $— $88 $45 $— $45 $37 $— $37 
Liabilities
Foreign currency contracts$— $— $— $(1)$— $(1)$— $— $— 
Forward contracts(3)— (3)(1)— (1)(2)— (2)
Interest rate lock commitments— — — (7)— (7)(2)— (2)
Interest rate contracts(12)— (12)(14)— (14)(18)— (18)
$(15)$— $(15)$(23)$— $(23)$(22)$— $(22)
Total derivatives and margin
Assets$523 $(134)$389 $305 $(52)$253 $265 $(21)$244 
Liabilities(162)134 (28)(79)52 (27)(49)21 (28)