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FAIR VALUE
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE FAIR VALUE
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. For more information about our valuation methodologies for assets and liabilities measured at fair value, as well as the fair value hierarchy, see Note 3 of our 2024 Form 10-K.
Fair Value Hierarchy
The following schedule presents assets and liabilities measured at fair value on a recurring basis:
(In millions)June 30, 2025
Level 1Level 2Level 3Total
ASSETS
Trading securities$— $180 $— $180 
Available-for-sale securities:
U.S. Treasury, agencies, and corporations1,101 6,954 — 8,055 
Municipal securities— 1,036 — 1,036 
Other debt securities— 25 — 25 
Total available-for-sale1,101 8,015 — 9,116 
Loans held for sale— 100 — 100 
Other noninterest-bearing investments:
Bank-owned life insurance— 567 — 567 
Private equity investments 1
16 — 116 132 
Other assets:
Agriculture loan servicing— — 20 20 
Deferred compensation plan assets139 — — 139 
Derivatives— 376 — 376 
Total assets$1,256 $9,238 $136 $10,630 
LIABILITIES
Fed funds and other short-term borrowings:
Securities sold, not yet purchased$136 $— $— $136 
Other liabilities:
Derivatives— 274 — 274 
Total liabilities$136 $274 $— $410 
1 The Level 1 private equity investments (“PEIs”) generally relate to the portion of our Small Business Investment Company (“SBIC”) investments and other similar investments that are publicly traded.
(In millions)December 31, 2024
Level 1Level 2Level 3Total
ASSETS
Trading securities$— $35 $— $35 
Available-for-sale securities:
U.S. Treasury, agencies, and corporations662 7,300 — 7,962 
Municipal securities— 1,108 — 1,108 
Other debt securities— 25 — 25 
Total available-for-sale662 8,433 — 9,095 
Loans held for sale— 25 — 25 
Other noninterest-bearing investments:
Bank-owned life insurance— 562 — 562 
Private equity investments 1
3 — 105 108 
Other assets:
Agriculture loan servicing— — 20 20 
Deferred compensation plan assets149 — — 149 
Derivatives— 446 — 446 
Total assets$814 $9,501 $125 $10,440 
LIABILITIES
Fed funds and other short-term borrowings:
Securities sold, not yet purchased$21 $— $— $21 
Other liabilities:
Derivatives— 350 — 350 
Total liabilities$21 $350 $— $371 
1 The Level 1 PEIs generally relate to the portion of our SBIC investments and other similar investments that are publicly traded.
Fair Value Option for Certain Loans Held for Sale
We have elected to apply the fair value option to certain commercial real estate (“CRE”) loans designated for sale to third-party conduits for securitization and hedged with derivative instruments. This election reduces accounting volatility that would otherwise arise from the mismatch between measuring loans held for sale at the lower of cost or fair value and derivatives at fair value, without requiring the application of hedge accounting. These loans are included in “Loans held for sale” on the consolidated balance sheet. Associated fair value gains and losses are included in “Capital markets fees and income” on the consolidated statement of income, while accrued interest is included in “Interest and fees on loans.”
At June 30, 2025 and December 31, 2024, we had $100 million and $25 million, respectively, of loans measured at fair value, with corresponding unpaid principal balance of $100 million and $26 million. During the first six months of 2025 and 2024, we recognized approximately $3 million and $6 million, respectively, in net gains from loan sales and valuation adjustments related to loans measured at fair value and the associated derivatives.
Level 3 Valuations
Our Level 3 financial instruments include PEIs and agriculture loan servicing. For additional information regarding our Level 3 financial instruments, including the methods and significant assumptions used to estimate their fair value, see Note 3 of our 2024 Form 10-K.
Roll-forward of Level 3 Fair Value Measurements
The following schedule presents a roll-forward of assets and liabilities that are measured at fair value on a recurring basis using Level 3 inputs:
Level 3 Instruments
Three Months Ended
June 30, 2025		Three Months Ended
June 30, 2024		Six Months Ended
June 30, 2025		Six Months Ended
June 30, 2024
(In millions)Private equity investmentsAg loan servicingPrivate equity investmentsAg loan servicingPrivate equity investmentsAg loan servicingPrivate equity investmentsAg loan servicing
Balance at beginning of period
$109 $19 $98 $19 $105 $20 $92 $19 
Unrealized securities gains, net20 — 2 — 24 — 2 — 
Other noninterest income— 1 — 1 — — — 1 
Purchases4 — 2 — 5 — 9 — 
Cost of investments sold(5)— (1)— (6)— (2)— 
Transfers out(12)— — — (12)— — — 
Balance at end of period
$116 $20 $101 $20 $116 $20 $101 $20 
The roll-forward of Level 3 instruments includes the following realized gains and losses recognized in “Securities gains (losses), net” on the consolidated statement of income for the periods presented:
(In millions)Three Months EndedSix Months Ended
June 30,
2025		June 30,
2024		June 30,
2025		June 30,
2024
Securities gains (losses), net$(5)$(1)$(5)$1 
Nonrecurring Fair Value Measurements
Certain assets and liabilities may be measured at fair value on a nonrecurring basis. These include impaired loans measured at the fair value of the underlying collateral, other real estate owned (“OREO”), and equity investments without readily determinable fair values. Nonrecurring fair value adjustments generally arise from observable price changes for such equity investments, write-downs of individual assets, or the application of lower of cost or fair value accounting. At June 30, 2025, we had $2 million in collateral-dependent loans measured at fair value. During the second quarter of 2025, we recognized $1 million in losses related to fair value changes for these loans. For additional information on assets and liabilities measured at fair value on a nonrecurring basis, see Note 3 of our 2024 Form 10-K.
Fair Value of Certain Financial Instruments
The following schedule presents the carrying values and estimated fair values of certain financial instruments:
 June 30, 2025December 31, 2024
(In millions)Carrying
value
Fair value		LevelCarrying
value		Fair valueLevel
Financial assets:
Held-to-maturity investment securities$9,272 $9,229 2$9,669 $9,382 2
Loans and leases (including loans held for sale), net of allowance
60,315 58,623 358,788 57,130 3
Financial liabilities:
Time deposits10,133 10,114 211,482 11,468 2
Long-term debt970 980 2950 950 2
The preceding schedule excludes certain financial instruments that are recorded at fair value on a recurring basis, as well as certain financial assets and liabilities for which the carrying value approximates fair value. For additional information regarding the financial instruments included within the scope of this disclosure, along with the valuation methodologies and significant assumptions used in estimating their fair values, see Note 3 of our 2024 Form 10-K.