v3.25.2
Derivative financial instruments (Tables)
 6 Months Ended
Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Information about Interest Rate Swap Agreements
Information about interest rate swap agreements entered into for interest rate risk management purposes summarized by the type of financial instrument the swap agreements were intended to hedge follows:
Notional
Amount		Weighted-Average
Maturity
(In years)
Weighted-
Average Rate
Estimated
Fair Value
Gain (Loss) (a)
(Dollars in millions)
Fixed
Variable
June 30, 2025 
Fair value hedges: 
Fixed rate long-term borrowings (b) (d)$6,100 5.33.56%4.46%$13 
Cash flow hedges:
Interest payments on variable rate commercial real estate and commercial
   and industrial loans (b) (e)		26,650 1.63.594.3211 
Total$32,750 2.3$24 
December 31, 2024
Fair value hedges:
Fixed rate long-term borrowings (b) (f)$5,350 5.93.55%4.71%$(2)
      Fixed rate investment securities available for sale (c)15 0.14.844.36— 
Cash flow hedges:
Interest payments on variable rate commercial real estate and commercial
   and industrial loans (b) (g)		30,819 1.63.414.471 
Total$36,184 2.2$(1)
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(a)Certain clearinghouse exchanges consider payments by counterparties for variation margin on derivative instruments to be settlements of those positions. The impact of such payments for interest rate swap agreements designated as fair value hedges was a net settlement of losses of $20 million and $153 million at June 30, 2025 and December 31, 2024, respectively. The impact of such payments on interest rate swap agreements designated as cash flow hedges was a net settlement of gains of $74 million and of losses of $136 million at June 30, 2025 and December 31, 2024, respectively.
(b)Under the terms of these agreements, the Company receives settlement amounts at a fixed rate and pays at a variable rate.
(c)Under the terms of these agreements, the Company receives settlement amounts at a variable rate and pays at a fixed rate.
(d)Includes notional amount and terms of $2.8 billion of forward-starting interest rate swap agreements that become effective in 2025 and 2026.
(e)Includes notional amount and terms of $11.5 billion of forward-starting interest rate swap agreements that become effective in 2025, 2026 and 2027.
(f)Includes notional amount and terms of $3.4 billion of forward-starting interest rate swap agreements that become effective in 2025 and 2026.
(g)Includes notional amount and terms of $10.0 billion of forward-starting interest rate swap agreements that become effective in 2025 and 2026.
Information about Fair Values of Derivative Instruments in Consolidated Balance Sheet
Information about the fair values of derivative instruments in the Company’s Consolidated Balance Sheet and Consolidated Statement of Income follows:
 Asset DerivativesLiability Derivatives
 Fair ValueFair Value
(Dollars in millions)June 30,
2025		December 31,
2024		June 30,
2025		December 31,
2024
Derivatives designated and qualifying as hedging instruments (a)    
Interest rate swap agreements$24 $2 $— $3 
Commitments to sell real estate loans3 4 4 — 
 27 6 4 3 
Derivatives not designated and qualifying as hedging instruments (a)    
Mortgage banking:    
Commitments to originate real estate loans for sale17 4 25 32 
Commitments to sell real estate loans27 39 7 — 
 44 43 32 32 
Other:    
Interest rate contracts (b)168 185 493 769 
Foreign exchange and other option and futures contracts26 21 25 18 
 194 206 518 787 
Total derivatives$265 $255 $554 $822 
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(a)Asset derivatives are included in Accrued interest and other assets and liability derivatives are included in Accrued interest and other liabilities in the Company's Consolidated Balance Sheet.
(b)The impact of variation margin payments at June 30, 2025 and December 31, 2024 was a reduction of the estimated fair value of interest rate contracts not designated as hedging instruments in an asset position of $440 million and $686 million, respectively, and in a liability position of $32 million and $15 million, respectively.
Carrying Amount of the Hedged ItemCumulative Amount of Fair Value Hedging Adjustment Increasing (Decreasing) the Carrying
Amount of the Hedged Item
(Dollars in millions)June 30,
2025		December 31, 2024June 30,
2025		December 31, 2024
Location in the Consolidated Balance Sheet
of the Hedged Items in Fair Value Hedges
Long-term borrowings$6,079 $5,184 $(8)$(155)
Investment securities available for sale 381 — 
Information about Fair Values of Derivative Instruments in Consolidated Statement of Income
Amount of Gain (Loss) Recognized
Three Months Ended June 30,
20252024
(Dollars in millions)
Derivative
Hedged Item
Derivative
Hedged Item
Derivatives in fair value hedging relationships    
Interest rate swap agreements:    
Fixed rate long-term borrowings (a)$54 $(55)$(18)$18 
Derivatives not designated as hedging instruments    
Interest rate contracts (b)$7 $3 
Foreign exchange and other option and futures contracts (b)2 4 
Total$9 $7 

Amount of Gain (Loss) Recognized
Six Months Ended June 30,
20252024
(Dollars in millions)
Derivative
Hedged Item
Derivative
Hedged Item
Derivatives in fair value hedging relationships
Interest rate swap agreements:
Fixed rate long-term borrowings (a)$147 $(147)$(78)$78 
Derivatives not designated as hedging instruments
Interest rate contracts (b)$12 $6 
Foreign exchange and other option and futures contracts (b)6 8 
Total$18 $14 
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(a)Reported as an adjustment to Interest expense in the Company's Consolidated Statement of Income.
(b)Included in Trading account and other non-hedging derivative gains in the Company's Consolidated Statement of Income.