v3.25.2
FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Refer to Note 25, "Fair Value Measurements" to the Consolidated Financial Statements included in our 2024 Annual Report on Form 10-K filed with the SEC on February 27, 2025 for a description of additional valuation methodologies for assets and liabilities measured at fair value on a recurring and non-recurring basis.
The following table presents the balances of assets and liabilities measured at fair value on a recurring basis:
TABLE 18.1
(in millions)Level 1Level 2Level 3Total
June 30, 2025
Assets Measured at Fair Value
Debt securities available for sale
U.S. Treasury$275 $— $— $275 
U.S. government agencies— 45 — 45 
U.S. GSE— 303 — 303 
Residential MBS:
Agency MBS— 774 — 774 
Agency CMO— 652 — 652 
Agency commercial MBS— 1,471 — 1,471 
States of the U.S. and political subdivisions (municipals)— 19 — 19 
Other debt securities— 41 — 41 
Total debt securities available for sale275 3,305 — 3,580 
Loans held for sale— 270 — 270 
Loans receivable— — 66 66 
Derivative financial instruments
Trading— 108 — 108 
Not for trading— 14 5 19 
Total derivative financial instruments— 122 5 127 
Total assets measured at fair value on a recurring basis$275 $3,697 $71 $4,043 
Liabilities Measured at Fair Value
Derivative financial instruments
Trading$— $235 $— $235 
Not for trading— 5 — 5 
Total derivative financial instruments— 240 — 240 
Total liabilities measured at fair value on a recurring basis$— $240 $— $240 
(in millions)Level 1Level 2Level 3Total
December 31, 2024
Assets Measured at Fair Value
Debt securities available for sale
U.S. Treasury$274 $— $— $274 
U.S. government agencies— 53 — 53 
U.S. GSE— 300 — 300 
Residential MBS:
Agency MBS— 694 — 694 
Agency CMO— 698 — 698 
Agency commercial MBS— 1,388 — 1,388 
States of the U.S. and political subdivisions (municipals)— 22 — 22 
Other debt securities— 37 — 37 
Total debt securities available for sale274 3,192 — 3,466 
Loans held for sale— 214 — 214 
Loans receivable— — 53 53 
Derivative financial instruments
Trading— 112 — 112 
Not for trading— 4 1 5 
Total derivative financial instruments— 116 1 117 
Total assets measured at fair value on a recurring basis$274 $3,522 $54 $3,850 
Liabilities Measured at Fair Value
Derivative financial instruments
Trading$— $303 $— $303 
Not for trading— 6 4 10 
Total derivative financial instruments— 309 4 313 
Total liabilities measured at fair value on a recurring basis$— $309 $4 $313 
The following table presents additional information about assets measured at fair value on a recurring basis and for which we have utilized Level 3 inputs to determine fair value:
TABLE 18.2
(in millions)Other
Debt
Securities		Loans ReceivableInterest
Rate Lock
Commitments		Total
Six Months Ended June 30, 2025
Balance at beginning of period$— $53 $1 $54 
Purchases, issuances, sales and settlements:
Issuances— — 6 6 
Settlements— — (1)(1)
Transfers into Level 3— 13 — 13 
Balance at end of period$— $66 $6 $72 
Year Ended December 31, 2024
Balance at beginning of period$— $— $5 $5 
Purchases, issuances, sales and settlements:
Issuances— — 1 1 
Settlements— — (5)(5)
Transfers into Level 3— 53 — 53 
Balance at end of period$— $53 $1 $54 
We review fair value hierarchy classifications on a quarterly basis. Changes in the observability of the valuation attributes may result in reclassification of certain financial assets or liabilities. Such reclassifications are reported as transfers in/out of Level 3 at fair value at the beginning of the period in which the changes occur. During the first six months of 2025, $13.0 million was transferred to loans receivable measured using the fair value option at Level 3, compared to $47.3 million during the first six months of 2024.
From time to time, we measure certain assets at fair value on a non-recurring basis. These adjustments to fair value usually result from the application of the lower of cost or fair value accounting or write-downs of individual assets. Valuation methodologies used to measure these fair value adjustments were described in Note 25, "Fair Value Measurements" to the Consolidated Financial Statements included in our 2024 Annual Report on Form 10-K. For assets measured at fair value on a non-recurring basis still held at the Balance Sheet date, the following table provides the hierarchy level and the fair value of the related assets or portfolios:
TABLE 18.3
(in millions)Level 1Level 2Level 3Total
June 30, 2025
Collateral dependent loans$— $— $98 $98 
Other assets - MSRs— — 1 1 
Other assets - SBA servicing asset— — 1 1 
December 31, 2024
Collateral dependent loans$— $— $105 $105 
Other assets - MSRs— — 1 1 
Other assets - SBA servicing asset— — 1 1 
Other real estate owned— — 2 2 
The fair value amounts for collateral dependent loans and OREO in the table above were estimated at a date during the six months or twelve months ended June 30, 2025 and December 31, 2024, respectively. Consequently, the fair value information presented is not necessarily as of the period’s end. Collateral dependent loans measured or re-measured at fair value on a non-recurring basis during the six months ended June 30, 2025 had a carrying amount of $97.7 million, which includes an allocated
ACL of $29.1 million. The ACL includes a provision applicable to the current period fair value measurements of $31.5 million, which was included in provision for credit losses for the six months ended June 30, 2025.
MSRs measured at fair value on a non-recurring basis had a carrying value of $1.1 million, and a valuation allowance of $0.1 million as of June 30, 2025. There was no provision relating to the valuation allowance included in earnings for 2025.
Fair Value of Financial Instruments
Refer to Note 25, "Fair Value Measurements" to the Consolidated Financial Statements included in our 2024 Annual Report on Form 10-K filed with the SEC on February 27, 2025 for a description of methods and assumptions that were used to estimate the fair value of each financial instrument.
The fair values of our financial instruments are as follows:
TABLE 18.4
  Fair Value Measurements
(in millions)Carrying
Amount		Fair
 Value		Level 1Level 2Level 3
June 30, 2025
Financial Assets
Cash and cash equivalents$2,427 $2,427 $2,427 $— $— 
Debt securities available for sale3,580 3,580 275 3,305 — 
Debt securities held to maturity4,115 3,857 1 3,856 — 
Net loans and leases, including loans held for sale34,543 33,674 — 270 33,404 
Loan servicing rights73 87 — — 87 
Derivative assets127 127 — 122 5 
Accrued interest receivable161 161 161 — — 
Financial Liabilities
Deposits37,748 37,713 30,235 7,478 — 
Short-term borrowings1,876 1,876 1,876 — — 
Long-term borrowings2,692 2,701 — 1,452 1,249 
Derivative liabilities240 240 — 240 — 
Accrued interest payable59 59 59 — — 
December 31, 2024
Financial Assets
Cash and cash equivalents$2,419 $2,419 $2,419 $— $— 
Debt securities available for sale3,466 3,466 274 3,192 — 
Debt securities held to maturity3,979 3,644 1 3,643 — 
Net loans and leases, including loans held for sale33,734 32,648 — 214 32,434 
Loan servicing rights72 88 — — 88 
Derivative assets117 117 — 116 1 
Accrued interest receivable164 164 164 — — 
Financial Liabilities
Deposits37,107 37,070 29,607 7,463 — 
Short-term borrowings1,256 1,256 1,256 — — 
Long-term borrowings3,012 3,004 — 1,748 1,256 
Derivative liabilities313 313 — 309 4 
Accrued interest payable65 65 65 — —