Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2025

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 1		Level 2	Level 3	Total 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 securities	704		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 securities	704		620	—	1,324
Equity securities	386		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 contracts	1		521	7	529
Foreign exchange contracts	—		729	—	729
Commodity contracts	149		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 contracts	92		649	—	741
Derivative liabilities(d)	98		2,018	150	2,266
Short positions:
U.S. Treasury and federal agencies securities	116		1	—	117
Asset-backed securities and other debt securities	—		254	—	254
Equity securities	18		—	—	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 1		Level 2	Level 3	Total 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 securities	591		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 securities	591		594	—	1,185
Equity securities	307		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 contracts	7		721	2	730
Foreign exchange contracts	—		1,167	—	1,167
Commodity contracts	75		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 contracts	57		507	—	564
Derivative liabilities(d)	57		2,566	175	2,798
Short positions:
U.S. Treasury and federal agencies securities	139		—	—	139
Asset-backed securities and other debt securities	—		156	—	156
Equity securities	21		—	—	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.

Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs

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 earnings	3		(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.

Total Gains and Losses Included in Earnings for Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs

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)	2025		2024	2025	2024
Mortgage banking net revenue	$	(38)	(20)	(71)	(5)
Capital markets fees	1		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)	2025		2024	2025	2024
Mortgage banking net revenue	$	(19)	10	(50)	37
Capital markets fees	1		1	1	1
Other noninterest income	(1)		(23)	(19)	(40)
Total losses	$	(19)	(12)	(68)	(2)

Quantitative Information About Significant Unobservable Level 3 Fair Value Measurement Input, Recurring

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 Instrument	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range of Inputs			Weighted-Average
Residential mortgage loans	$	107	Loss rate model	Interest rate risk factor	(52.0)	-	6.1%		(11.4)	%	(a)
				Credit risk factor	—	-	0.8%		0.1	%	(a)
Servicing rights	1,629		DCF	Prepayment speed	—	-	100.0%	(Fixed)	6.5	%	(b)
								(Adjustable)	17.2	%	(b)
				OAS (bps)	335	-	1,821	(Fixed)	433		(b)
								(Adjustable)	723		(b)
IRLCs, net	7		DCF	Loan closing rates	18.6	-	96.0%		82.2	%	(c)
Swap associated with the sale of Visa, Inc. Class B Shares	(145)		DCF	Timing of the resolution of the Covered Litigation	Q2 2027	-	Q2 2028	Q4 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 Instrument	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range of Inputs			Weighted-Average
Residential mortgage loans	$	109	Loss rate model	Interest rate risk factor	(26.0)	-	5.0 %		(14.1)	%	(a)
				Credit risk factor	—	-	0.6 %		0.1	%	(a)
Servicing rights	1,731		DCF	Prepayment speed	—	-	100.0 %	(Fixed)	5.6	%	(b)
								(Adjustable)	22.1	%	(b)
				OAS (bps)	420	-	1,833	(Fixed)	448		(b)
								(Adjustable)	693		(b)
IRLCs, net	5		DCF	Loan closing rates	18.8	-	96.0 %		82.3	%	(c)
Swap associated with the sale of Visa, Inc. Class B Shares	(164)		DCF	Timing of the resolution of the Covered Litigation	Q4 2026	-	Q1 2028	Q2 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

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 Using					Total (Losses) Gains
As of June 30, 2025 ($ in millions)	Level 1		Level 2	Level 3	Total	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 Using					Total (Losses) Gains
As of June 30, 2024 ($ in millions)	Level 1		Level 2	Level 3	Total	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)

Quantitative Information About Significant Unobservable Level 3 Fair Value Measurement Input, Nonrecurring

As of June 30, 2025 ($ in millions)

Financial Instrument

Fair Value

Valuation Technique

Significant Unobservable Inputs

Ranges of
Inputs

Weighted-Average

Commercial loans and leases

222

Appraised value

Collateral value

Consumer and residential mortgage loans

194

Appraised value

Collateral value

OREO

Appraised value

As of June 30, 2024 ($ in millions)

Financial Instrument

Fair Value

Valuation Technique

Significant Unobservable Inputs

Ranges of
Inputs

Weighted-Average

Commercial loans held for sale

Comparable company analysis

Market comparable transactions

Commercial loans and leases

Appraised value

Collateral value

Consumer and residential mortgage loans

196

Appraised value

Collateral value

OREO

Appraised value

Bank premises and equipment

Appraised value

Private equity investments

—

Comparable company analysis

Market comparable transactions

Difference Between the Fair Value and the Unpaid Principal Balance for Loans

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 days	1		1
Past due loans of 90 days or more	1		1
Nonaccrual loans	2		2
December 31, 2024
Residential mortgage loans measured at fair value	$	682	693
Past due loans of 30-89 days	1		1
Past due loans of 90 days or more	1		1
Nonaccrual loans	2		2

Carrying Amounts and Estimated Fair Values for 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 Using			Total Fair Value
As of June 30, 2025 ($ in millions)			Level 1	Level 2	Level 3
Financial assets:
Cash and due from banks	$	2,972	2,972	—	—	2,972
Other short-term investments	13,043		13,043	—	—	13,043
Other securities	807		—	807	—	807
Held-to-maturity securities	11,630		2,414	9,131	2	11,547
Loans and leases held for sale	74		—	—	74	74
Portfolio loans and leases:
Commercial loans and leases	72,859		—	—	73,223	73,223
Consumer and residential mortgage loans	47,018		—	—	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 purchased	178		178	—	—	178
Other short-term borrowings	3,393		—	3,395	—	3,395
Long-term debt	14,490		7,381	7,449	—	14,830


	Net Carrying Amount		Fair Value Measurements Using			Total Fair Value
As of December 31, 2024 ($ in millions)			Level 1	Level 2	Level 3
Financial assets:
Cash and due from banks	$	3,014	3,014	—	—	3,014
Other short-term investments	17,120		17,120	—	—	17,120
Other securities	778		—	778	—	778
Held-to-maturity securities	11,278		2,344	8,619	2	10,965
Loans and leases held for sale	66		—	—	66	66
Portfolio loans and leases:
Commercial loans and leases	72,139		—	—	72,319	72,319
Consumer and residential mortgage loans	45,192		—	—	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 purchased	204		204	—	—	204
Other short-term borrowings	4,450		—	4,459	—	4,459
Long-term debt	14,440		3,753	10,835	—	14,588

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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