| Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis |
The following tables present assets and liabilities at June 30, 2025 and December 31, 2024 measured at estimated fair value on a recurring basis: | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in millions) | Fair Value Measurements | | Level 1 | | Level 2 | | Level 3 (a) | | June 30, 2025 | | | | | | | | | Trading account | $ | 93 | | | $ | 93 | | | $ | — | | | $ | — | | | Investment securities available for sale: | | | | | | | | | U.S. Treasury | 7,837 | | | — | | | 7,837 | | | — | | | Mortgage-backed securities: | | | | | | | | | Government issued or guaranteed: | | | | | | | | | Commercial | 4,767 | | | — | | | 4,767 | | | — | | | Residential | 8,933 | | | — | | | 8,933 | | | — | | | Other | 3 | | | — | | | 3 | | | — | | | | 21,540 | | | — | | | 21,540 | | | — | | | Equity securities | 274 | | | 274 | | | — | | | — | | | Real estate loans held for sale | 583 | | | — | | | 583 | | | — | | | Other assets (b) | 265 | | | — | | | 260 | | | 5 | | | Total assets | $ | 22,755 | | | $ | 367 | | | $ | 22,383 | | | $ | 5 | | | Other liabilities (b) | $ | 554 | | | $ | — | | | $ | 554 | | | $ | — | | | Total liabilities | $ | 554 | | | $ | — | | | $ | 554 | | | $ | — | | | | | | | | | | | December 31, 2024 | | | | | | | | | Trading account | $ | 101 | | | $ | 101 | | | $ | — | | | $ | — | | | Investment securities available for sale: | | | | | | | | | U.S. Treasury | 7,931 | | | — | | | 7,931 | | | — | | | Mortgage-backed securities: | | | | | | | | | Government issued or guaranteed: | | | | | | | | | Commercial | 3,702 | | | — | | | 3,702 | | | — | | | Residential | 7,214 | | | — | | | 7,214 | | | — | | | Other | 2 | | | — | | | 2 | | | — | | | | 18,849 | | | — | | | 18,849 | | | — | | | Equity securities | 235 | | | 235 | | | — | | | — | | | Real estate loans held for sale | 521 | | | — | | | 521 | | | — | | | Other assets (b) | 255 | | | — | | | 251 | | | 4 | | | Total assets | $ | 19,961 | | | $ | 336 | | | $ | 19,621 | | | $ | 4 | | | Other liabilities (b) | $ | 822 | | | $ | — | | | $ | 790 | | | $ | 32 | | | Total liabilities | $ | 822 | | | $ | — | | | $ | 790 | | | $ | 32 | |
__________________________________________________________________________________(a)Significant unobservable inputs used in the fair value measurement of certain commitments to originate real estate loans held for sale included weighted-average commitment expirations of 30% at June 30, 2025 and 6% at December 31, 2024. An increase (decrease) in the estimate of expirations for commitments to originate real estate loans would generally result in a lower (higher) fair value measurement. Estimated commitment expirations are derived considering loan type, changes in interest rates and remaining length of time until closing. (b)Comprised predominantly of interest rate swap agreements used for interest rate risk management (Level 2), interest rate and foreign exchange contracts not designated as hedging instruments (Level 2), commitments to sell real estate loans (Level 2) and commitments to originate real estate loans to be held for sale (Level 2 and Level 3).
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| Carrying Amounts and Estimated Fair Value for Financial Instrument Assets (Liabilities) |
The carrying amounts and estimated fair value for certain financial instruments that are not recorded at fair value in the Company's Consolidated Balance Sheet are presented in the following table: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in millions) | Carrying Amount | | Estimated Fair Value | | Level 1 | | Level 2 | | Level 3 | | June 30, 2025 | | | | | | | | | | | Financial assets: | | | | | | | | | | | Cash and cash equivalents | $ | 2,128 | | | $ | 2,128 | | | $ | 1,985 | | | $ | 143 | | | $ | — | | | Interest-bearing deposits at banks | 19,297 | | | 19,297 | | | — | | | 19,297 | | | — | | | Investment securities held to maturity | 13,024 | | | 12,073 | | | — | | | 12,028 | | | 45 | | | Loans, net | 133,919 | | | 133,683 | | | — | | | 6,811 | | | 126,872 | | | Financial liabilities: | | | | | | | | | | | Time deposits | 14,094 | | | 14,055 | | | — | | | 14,055 | | | — | | | Short-term borrowings | 2,071 | | | 2,071 | | | — | | | 2,071 | | | — | | | Long-term borrowings | 12,380 | | | 12,552 | | | — | | | 12,552 | | | — | | | | | | | | | | | | | December 31, 2024 | | | | | | | | | | | Financial assets: | | | | | | | | | | | Cash and cash equivalents | 1,909 | | | 1,909 | | | 1,749 | | | 160 | | | — | | | Interest-bearing deposits at banks | 18,873 | | | 18,873 | | | — | | | 18,873 | | | — | | | Investment securities held to maturity | 14,195 | | | 12,955 | | | — | | | 12,909 | | | 46 | | | Loans, net | 133,397 | | | 131,334 | | | — | | | 6,806 | | | 124,528 | | | Financial liabilities: | | | | | | | | | | | Time deposits | 14,476 | | | 14,463 | | | — | | | 14,463 | | | — | | | Short-term borrowings | 1,060 | | | 1,060 | | | — | | | 1,060 | | | — | | | Long-term borrowings | 12,605 | | | 12,754 | | | — | | | 12,754 | | | — | |
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