FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2025

Schedule of Assets and Liabilities Measured at Fair Value by Class on a Recurring Basis

The following schedule presents assets and liabilities measured at fair value on a recurring basis:


(In millions)	June 30, 2025
	Level 1		Level 2		Level 3		Total
ASSETS
Trading securities	$	—	$	180	$	—	$	180
Available-for-sale securities:
U.S. Treasury, agencies, and corporations	1,101		6,954		—		8,055
Municipal securities	—		1,036		—		1,036
Other debt securities	—		25		—		25
Total available-for-sale	1,101		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 assets	139		—		—		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 1		Level 2		Level 3		Total
ASSETS
Trading securities	$	—	$	35	$	—	$	35
Available-for-sale securities:
U.S. Treasury, agencies, and corporations	662		7,300		—		7,962
Municipal securities	—		1,108		—		1,108
Other debt securities	—		25		—		25
Total available-for-sale	662		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 assets	149		—		—		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.

Schedule of Assets and Liabilities Measured at Fair Value by Class on a Recurring Basis Using Level 3 Inputs

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 investments		Ag loan servicing		Private equity investments		Ag loan servicing		Private equity investments		Ag loan servicing		Private equity investments		Ag loan servicing

Balance at beginning of period	$	109	$	19	$	98	$	19	$	105	$	20	$	92	$	19
Unrealized securities gains, net	20		—		2		—		24		—		2		—
Other noninterest income	—		1		—		1		—		—		—		1
Purchases	4		—		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

Schedule of Rollforward of Level 3 Fair Value Measurements Including Realized Gains and Losses in the Income Statement

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 Ended				Six Months Ended
	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024


Securities gains (losses), net	$	(5)	$	(1)	$	(5)	$	1

Schedule of Carrying Values and Estimated Fair Values

The following schedule presents the carrying values and estimated fair values of certain financial instruments:


	June 30, 2025					December 31, 2024
(In millions)	Carrying value		Fair value		Level	Carrying value		Fair value		Level
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		3	58,788		57,130		3
Financial liabilities:
Time deposits	10,133		10,114		2	11,482		11,468		2


Long-term debt	970		980		2	950		950		2

- 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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