v3.25.2
Fair Value Measurements
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Bancorp measures certain financial assets and liabilities at fair value in accordance with U.S. GAAP, which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP also establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the instrument’s fair value measurement. For more information regarding the fair value hierarchy, refer to Note 1 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2024.

Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables summarize assets and liabilities measured at fair value on a recurring basis as of:
Fair Value Measurements Using
June 30, 2025 ($ in millions)Level 1Level 2Level 3Total Fair Value
Assets:
Available-for-sale debt and other securities:
U.S. Treasury and federal agencies securities$3,508 — — 3,508 
Mortgage-backed securities:
Agency residential mortgage-backed securities— 6,887 — 6,887 
Agency commercial mortgage-backed securities— 20,943 — 20,943 
Non-agency commercial mortgage-backed securities— 3,323 — 3,323 
Asset-backed securities and other debt securities— 2,802 — 2,802 
Available-for-sale debt and other securities(a)
3,508 33,955 — 37,463 
Trading debt securities:
U.S. Treasury and federal agencies securities704 19 — 723 
Obligations of states and political subdivisions securities— 35 — 35 
Agency residential mortgage-backed securities— 26 — 26 
Asset-backed securities and other debt securities— 540 — 540 
Trading debt securities704 620 — 1,324 
Equity securities386 18 — 404 
Residential mortgage loans held for sale— 572 — 572 
Residential mortgage loans(b)
— — 107 107 
Servicing rights— — 1,629 1,629 
Derivative assets:
Interest rate contracts1 521 7 529 
Foreign exchange contracts— 729 — 729 
Commodity contracts149 590 — 739 
Derivative assets(c)
150 1,840 7 1,997 
Total assets$4,748 37,005 1,743 43,496 
Liabilities:
Derivative liabilities:
Interest rate contracts$6 669 5 680 
Foreign exchange contracts— 700 — 700 
Equity contracts— — 145 145 
Commodity contracts92 649 — 741 
Derivative liabilities(d)
98 2,018 150 2,266 
Short positions:
U.S. Treasury and federal agencies securities116 1 — 117 
Asset-backed securities and other debt securities— 254 — 254 
Equity securities18 — — 18 
Short positions(d)
134 255 — 389 
Total liabilities$232 2,273 150 2,655 
(a)Excludes FHLB, FRB and DTCC restricted stock holdings totaling $300, $504 and $3, respectively, at June 30, 2025.
(b)Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment.
(c)Included in other assets in the Condensed Consolidated Balance Sheets.
(d)Included in other liabilities in the Condensed Consolidated Balance Sheets.
Fair Value Measurements Using
December 31, 2024 ($ in millions)Level 1Level 2Level 3Total Fair Value
Assets:
Available-for-sale debt and other securities:
U.S. Treasury and federal agencies securities$4,360 — — 4,360 
Mortgage-backed securities:
Agency residential mortgage-backed securities— 5,681 — 5,681 
Agency commercial mortgage-backed securities— 20,832 — 20,832 
Non-agency commercial mortgage-backed securities— 4,167 — 4,167 
Asset-backed securities and other debt securities— 3,729 — 3,729 
Available-for-sale debt and other securities(a)
4,360 34,409 — 38,769 
Trading debt securities:
U.S. Treasury and federal agencies securities591 35 — 626 
Obligations of states and political subdivisions securities— 120 — 120 
Agency residential mortgage-backed securities— 10 — 10 
Asset-backed securities and other debt securities— 429 — 429 
Trading debt securities591 594 — 1,185 
Equity securities307 34 — 341 
Residential mortgage loans held for sale— 574 — 574 
Residential mortgage loans(b)
— — 108 108 
Servicing rights— — 1,704 1,704 
Derivative assets:
Interest rate contracts7 721 2 730 
Foreign exchange contracts— 1,167 — 1,167 
Commodity contracts75 500 — 575 
Derivative assets(c)
82 2,388 2 2,472 
Total assets$5,340 37,999 1,814 45,153 
Liabilities:
Derivative liabilities:
Interest rate contracts$— 939 5 944 
Foreign exchange contracts— 1,120 — 1,120 
Equity contracts— — 170 170 
Commodity contracts57 507 — 564 
Derivative liabilities(d)
57 2,566 175 2,798 
Short positions:
U.S. Treasury and federal agencies securities139 — — 139 
Asset-backed securities and other debt securities— 156 — 156 
Equity securities21 — — 21 
Short positions(d)
160 156 — 316 
Total liabilities$217 2,722 175 3,114 
(a)Excludes FHLB, FRB and DTCC restricted stock holdings totaling $276, $500 and $2, respectively, at December 31, 2024.
(b)Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment.
(c)Included in other assets in the Condensed Consolidated Balance Sheets.
(d)Included in other liabilities in the Condensed Consolidated Balance Sheets.

For further information on the valuation methodologies used for significant instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, refer to Note 28 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2024.
The following tables are a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
For the three months ended June 30, 2025 ($ in millions)
Residential
Mortgage
Loans		Servicing
Rights
Interest Rate
Derivatives,
Net(a)
Equity
Derivatives		Total
Fair Value
Balance, beginning of period$109 1,663 — (173)1,599 
Total (losses) gains (realized/unrealized):(b)
 Included in earnings— (49)12 (1)(38)
Purchases/originations— 15 — — 15 
Settlements(3)— (10)29 16 
Transfers into Level 3(c)
1 — — — 1 
Balance, end of period$107 1,629 2 (145)1,593 
The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at June 30, 2025
$— (26)8 (1)(19)
(a)Net interest rate derivatives include derivative assets and liabilities of $7 and $5, respectively, as of June 30, 2025.
(b)There were no unrealized gains or losses for the period included in other comprehensive income for instruments still held at June 30, 2025.
(c)Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment.

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
For the three months ended June 30, 2024 ($ in millions)
Residential
Mortgage
Loans		Servicing
Rights
Interest Rate
Derivatives,
Net(a)
Equity
Derivatives		Total
Fair Value
Balance, beginning of period$113 1,756 — (162)1,707 
Total (losses) gains (realized/unrealized):(b)
 Included in earnings(1)(30)12 (23)(42)
Purchases/originations— 10 — — 10 
Sales— (5)— — (5)
Settlements(4)— (12)21 5 
Transfers into Level 3(c)
1 — — — 1 
Balance, end of period$109 1,731 — (164)1,676 
The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at June 30, 2024
$(1)7 5 (23)(12)
(a)Net interest rate derivatives include $6 for both derivative assets and liabilities as of June 30, 2024.
(b)There were no unrealized gains or losses for the period included in other comprehensive income for instruments still held at June 30, 2024.
(c)Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment.

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
For the six months ended June 30, 2025 ($ in millions)
Residential
Mortgage
Loans		Servicing
Rights
Interest Rate
Derivatives,
Net(a)
Equity
Derivatives		Total
Fair Value
Balance, beginning of period$108 1,704 (3)(170)1,639 
Total (losses) gains (realized/unrealized):(b)
 Included in earnings3 (100)27 (19)(89)
Purchases/originations— 25 (1)— 24 
Settlements(6)— (21)44 17 
Transfers into Level 3(c)
2 — — — 2 
Balance, end of period$107 1,629 2 (145)1,593 
The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at June 30, 2025
$3 (60)8 (19)(68)
(a)Net interest rate derivatives include derivative assets and liabilities of $7 and $5, respectively, as of June 30, 2025.
(b)There were no unrealized gains or losses for the period included in other comprehensive income for instruments still held at June 30, 2025.
(c)Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment.
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
For the six months ended June 30, 2024 ($ in millions)
Residential
Mortgage
Loans		Servicing
Rights
Interest Rate
Derivatives,
Net(a)
Equity
Derivatives		Total
Fair Value
Balance, beginning of period$116 1,737 — (168)1,685 
Total (losses) gains (realized/unrealized):(b)
 Included in earnings(3)(22)21 (40)(44)
Purchases/originations/acquisitions— 21 (1)— 20 
Sales— (5)— — (5)
Settlements(6)— (20)44 18 
Transfers into Level 3(c)
2 — — — 2 
Balance, end of period$109 1,731 — (164)1,676 
The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at June 30, 2024
$(3)35 6 (40)(2)
(a)Net interest rate derivatives include $6 for both derivative assets and liabilities as of June 30, 2024.
(b)There were no unrealized gains or losses for the period included in other comprehensive income for instruments still held at June 30, 2024.
(c)Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment.

The total losses and gains included in earnings for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were recorded in the Condensed Consolidated Statements of Income as follows:
For the three months ended
June 30,		For the six months ended
June 30,
($ in millions)2025202420252024
Mortgage banking net revenue$(38)(20)(71)(5)
Capital markets fees1 1 1 1 
Other noninterest income(1)(23)(19)(40)
Total losses$(38)(42)(89)(44)

The total losses and gains included in earnings attributable to changes in unrealized gains and losses related to Level 3 assets and liabilities still held at June 30, 2025 and 2024 were recorded in the Condensed Consolidated Statements of Income as follows:
For the three months ended
June 30,		For the six months ended
June 30,
($ in millions)2025202420252024
Mortgage banking net revenue$(19)10 (50)37 
Capital markets fees1 1 1 1 
Other noninterest income(1)(23)(19)(40)
Total losses$(19)(12)(68)(2)
The following tables present information as of June 30, 2025 and 2024 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured at fair value on a recurring basis:
As of June 30, 2025 ($ in millions)
Financial InstrumentFair ValueValuation
Technique		Significant
Unobservable Inputs		Range of Inputs
Weighted-Average
Residential mortgage loans$107 Loss rate modelInterest rate risk factor(52.0)-6.1%(11.4)%
(a)
Credit risk factor— -0.8%0.1 %
(a)
Servicing rights1,629 DCFPrepayment speed— -100.0%
(Fixed)
6.5 %
(b)
(Adjustable)
17.2 %
(b)
OAS (bps)335 -1,821
(Fixed)
433
(b)
(Adjustable)
723
(b)
IRLCs, net7 DCFLoan closing rates18.6 -96.0%82.2 %
(c)
Swap associated with the sale of Visa, Inc. Class B Shares(145)DCFTiming of the resolution
   of the Covered Litigation		Q2 2027-Q2 2028Q4 2027
(d)
(a)Unobservable inputs were weighted by the relative carrying value of the instruments.
(b)Unobservable inputs were weighted by the relative unpaid principal balance of the instruments.
(c)Unobservable inputs were weighted by the relative notional amount of the instruments.
(d)Unobservable inputs were weighted by the probability of the final funding date of the instruments.

As of June 30, 2024 ($ in millions)
Financial InstrumentFair ValueValuation
Technique		Significant
Unobservable Inputs		Range of InputsWeighted-Average
Residential mortgage loans$109 Loss rate modelInterest rate risk factor(26.0)-5.0 %(14.1)%
(a)
Credit risk factor— -0.6 %0.1 %
(a)
Servicing rights1,731 DCFPrepayment speed— -100.0 %(Fixed)5.6 %
(b)
(Adjustable)22.1 %
(b)
OAS (bps)420-1,833(Fixed)448
(b)
(Adjustable)693
(b)
IRLCs, net5 DCFLoan closing rates18.8 -96.0 %82.3 %
(c)
Swap associated with the sale of Visa, Inc. Class B Shares
(164)DCFTiming of the resolution
   of the Covered Litigation		Q4 2026-Q1 2028Q2 2027
(d)
(a)Unobservable inputs were weighted by the relative carrying value of the instruments.
(b)Unobservable inputs were weighted by the relative unpaid principal balance of the instruments.
(c)Unobservable inputs were weighted by the relative notional amount of the instruments.
(d)Unobservable inputs were weighted by the probability of the final funding date of the instruments.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Certain assets and liabilities are measured at fair value on a nonrecurring basis. These assets and liabilities are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment.

The following tables provide the fair value hierarchy and carrying amount of all assets that were held as of June 30, 2025 and 2024, and for which a nonrecurring fair value adjustment was recorded during the three and six months ended June 30, 2025 and 2024, and the related gains and losses from fair value adjustments on assets sold during the period as well as assets still held as of the end of the period.
Fair Value Measurements UsingTotal (Losses) Gains
As of June 30, 2025 ($ in millions)Level 1Level 2Level 3Total
For the three months ended June 30, 2025
For the six
months ended June 30, 2025
Commercial loans and leases$— — 222 222 (78)(204)
Consumer and residential mortgage loans— — 194 194 (3)(7)
OREO— — 5 5 — 1 
Private equity investments— 13 — 13 — 4 
Total$— 13 421 434 (81)(206)
Fair Value Measurements UsingTotal (Losses) Gains
As of June 30, 2024 ($ in millions)Level 1Level 2Level 3Total
For the three months ended
 June 30, 2024
For the six
months ended
June 30, 2024
Commercial loans held for sale$— — 4 4 — — 
Commercial loans and leases— — 67 67 (44)(104)
Consumer and residential mortgage loans— — 196 196 — (3)
OREO— — 5 5 (1)(1)
Bank premises and equipment— — 3 3 — — 
Private equity investments— — — — — 9 
Total$— — 275 275 (45)(99)

The following tables present information as of June 30, 2025 and 2024 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured on a nonrecurring basis:
As of June 30, 2025 ($ in millions)
Financial InstrumentFair ValueValuation TechniqueSignificant Unobservable InputsRanges of
Inputs		Weighted-Average
Commercial loans and leases$222 Appraised valueCollateral valueNMNM
Consumer and residential mortgage loans194 Appraised valueCollateral valueNMNM
OREO5 Appraised valueAppraised valueNMNM
As of June 30, 2024 ($ in millions)
Financial InstrumentFair ValueValuation TechniqueSignificant Unobservable InputsRanges of
Inputs		Weighted-Average
Commercial loans held for sale$4 Comparable company analysisMarket comparable transactionsNMNM
Commercial loans and leases67 Appraised valueCollateral valueNMNM
Consumer and residential mortgage loans196 Appraised valueCollateral valueNMNM
OREO5 Appraised valueAppraised valueNMNM
Bank premises and equipment3 Appraised valueAppraised valueNMNM
Private equity investments— Comparable company analysisMarket comparable transactionsNMNM
Commercial loans held for sale
The Bancorp estimated the fair value of certain commercial loans held for sale during the three and six months ended June 30, 2024. These valuations were based on appraisals of the underlying collateral or by applying unobservable inputs such as an estimated market discount to the unpaid principal balance of the loans or the appraised value of the assets (Level 3 of the valuation hierarchy).
Portfolio loans and leases
During the three and six months ended June 30, 2025 and 2024, the Bancorp recorded nonrecurring adjustments to certain collateral-dependent portfolio loans and leases. When a loan is collateral-dependent, the fair value of the loan is generally based on the fair value less cost to sell of the underlying collateral supporting the loan and therefore these loans were classified within Level 3 of the valuation hierarchy. In cases where the amortized cost basis of the loan or lease exceeds the estimated net realizable value of the collateral, then an ALLL is recognized, or a charge-off once the remaining amount is considered uncollectible.

OREO
During the three and six months ended June 30, 2025 and 2024, the Bancorp recorded nonrecurring adjustments to certain commercial and residential real estate properties and branch-related real estate no longer intended to be used for banking purposes classified as OREO and measured at the lower of carrying amount or fair value. These nonrecurring adjustments were primarily due to changes in real estate values of the properties recognized upon the transfer, or subsequent to the transfer, to OREO. The fair value amounts are generally based on appraisals of the property values, resulting in a classification within Level 3 of the valuation hierarchy. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized.

Private equity investments
The Bancorp accounts for its private equity investments using the measurement alternative to fair value, except for those accounted for under the equity method of accounting. Under the measurement alternative, the Bancorp carries each investment at its cost basis minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. The Bancorp did not recognize gains and recognized gains of $4 million during the three and six months ended June 30, 2025, respectively, and did not recognize gains and recognized gains of $9 million during the three and six months ended June 30, 2024, respectively, resulting from observable price changes. The carrying value of the Bancorp’s private equity investments still held as of June 30,
2025 includes a cumulative $23 million of positive adjustments as a result of observable price changes since January 1, 2018. Because these adjustments are based on observable transactions in inactive markets, they are classified in Level 2 of the fair value hierarchy.

For private equity investments which are accounted for using the measurement alternative to fair value, the Bancorp qualitatively evaluates each investment quarterly to determine if impairment may exist. If necessary, the Bancorp then measures impairment by estimating the value of its investment and comparing that to the investment’s carrying value, whether or not the Bancorp considers the impairment to be temporary. These valuations are typically developed using a DCF method, but other methods may be used if more appropriate for the circumstances. These valuations are based on unobservable inputs and therefore are classified in Level 3 of the fair value hierarchy. For both the three and six months ended June 30, 2025, the Bancorp recognized an immaterial amount of impairment charges on its private equity investments and did not recognize impairment charges for both the three and six months ended June 30, 2024. The carrying value of the Bancorp’s private equity investments still held as of June 30, 2025 includes a cumulative $15 million of impairment charges recognized since adoption of the measurement alternative to fair value on January 1, 2018.

Fair Value Option
The Bancorp elected to measure certain residential mortgage loans held for sale under the fair value option as allowed under U.S. GAAP. Electing to measure residential mortgage loans held for sale at fair value reduces certain timing differences and better matches changes in the value of these assets with changes in the value of derivatives used as economic hedges for these assets. Management’s intent to sell residential mortgage loans classified as held for sale may change over time due to such factors as changes in the overall liquidity in markets or changes in characteristics specific to certain loans held for sale. Consequently, these loans may be reclassified to loans held for investment and maintained in the Bancorp’s loan portfolio. In such cases, the loans will continue to be measured at fair value.

Fair value changes recognized in earnings for residential mortgage loans held at June 30, 2025 and 2024 for which the fair value option was elected included losses of $9 million and $7 million, respectively. These losses are reported in mortgage banking net revenue in the Condensed Consolidated Statements of Income.

Valuation adjustments related to instrument-specific credit risk for residential mortgage loans measured at fair value negatively impacted the fair value of those loans by an immaterial amount at both June 30, 2025 and December 31, 2024. Interest on loans measured at fair value is accrued as it is earned using the effective interest method and is reported as interest income in the Condensed Consolidated Statements of Income.

The following table summarizes the fair value and the unpaid principal balance for residential mortgage loans measured at fair value as of:
June 30, 2025 ($ in millions)Aggregate
Fair Value		Aggregate Unpaid
Principal Balance
Residential mortgage loans measured at fair value$679 677 
Past due loans of 30-89 days1 1 
Past due loans of 90 days or more1 1 
Nonaccrual loans2 2 
December 31, 2024
Residential mortgage loans measured at fair value$682 693 
Past due loans of 30-89 days1 1 
Past due loans of 90 days or more1 1 
Nonaccrual loans2 2 
Fair Value of Certain Financial Instruments
The following tables summarize the carrying amounts and estimated fair values for certain financial instruments, excluding financial instruments measured at fair value on a recurring basis:
Net Carrying
Amount		Fair Value Measurements UsingTotal
Fair Value
As of June 30, 2025 ($ in millions)Level 1Level 2Level 3
Financial assets:
Cash and due from banks
$2,972 2,972 — — 2,972 
Other short-term investments13,043 13,043 — — 13,043 
Other securities807 — 807 — 807 
Held-to-maturity securities11,630 2,414 9,131 2 11,547 
Loans and leases held for sale74 — — 74 74 
Portfolio loans and leases:
Commercial loans and leases72,859 — — 73,223 73,223 
Consumer and residential mortgage loans47,018 — — 44,714 44,714 
Total portfolio loans and leases, net$119,877 — — 117,937 117,937 
Financial liabilities:
Deposits$164,207 — 164,303 — 164,303 
Federal funds purchased178 178 — — 178 
Other short-term borrowings3,393 — 3,395 — 3,395 
Long-term debt14,490 7,381 7,449 — 14,830 
Net Carrying
Amount		Fair Value Measurements UsingTotal
Fair Value
As of December 31, 2024 ($ in millions)Level 1Level 2Level 3
Financial assets:
Cash and due from banks$3,014 3,014 — — 3,014 
Other short-term investments17,120 17,120 — — 17,120 
Other securities778 — 778 — 778 
Held-to-maturity securities11,278 2,344 8,619 2 10,965 
Loans and leases held for sale66 — — 66 66 
Portfolio loans and leases:
Commercial loans and leases72,139 — — 72,319 72,319 
Consumer and residential mortgage loans45,192 — — 42,155 42,155 
Total portfolio loans and leases, net$117,331 — — 114,474 114,474 
Financial liabilities:
Deposits$167,252 — 167,353 — 167,353 
Federal funds purchased204 204 — — 204 
Other short-term borrowings4,450 — 4,459 — 4,459 
Long-term debt14,440 3,753 10,835 — 14,588