v3.25.2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 6 Months Ended
Jun. 30, 2025
Summary of Derivative Instruments [Abstract]  
Schedule of Derivative Amounts
The following schedule presents derivative notional amounts and recorded gross fair values at June 30, 2025 and December 31, 2024:
June 30, 2025December 31, 2024
Notional
amount		Fair valueNotional
amount		Fair value
(In millions)Other
assets		Other
liabilities		Other
assets		Other
liabilities
Derivatives designated as hedging instruments:
Cash flow hedges:
Hedges of floating-rate assets
$750 $7 $— $550 $— $2 
Hedges of floating-rate liabilities— — — 500 — — 
Fair value hedges:
Hedges of fixed-rate assets 1
6,166 80 — 4,668 93 — 
Hedges of fixed-rate liabilities500 — — 500 — — 
Total derivatives designated as hedging instruments7,416 87 — 6,218 93 2 
Derivatives not designated as hedging instruments:
Customer interest rate derivatives 2
18,221 284 271 16,833 348 346 
Other interest rate derivatives1,134 1 — 1,105 1 — 
Foreign exchange derivatives466 4 2 373 4 2 
Purchased credit derivatives79 — 1 24 — — 
Total derivatives not designated as hedging instruments
19,900 289 274 18,335 353 348 
Total derivatives$27,316 $376 $274 $24,553 $446 $350 
1 Includes forward-starting swaps that are not yet effective.
2 Customer interest rate derivatives include both customer-facing derivatives and offsetting dealer-facing derivatives.
Schedule of Derivative Gains (Losses) Deferred in OCI or Recognized in Earnings
The following schedules present the amount of gains (losses) from derivative instruments designated as cash flow and fair value hedges that were deferred in AOCI or recognized in earnings for the three and six months ended June 30, 2025 and 2024:
Three Months Ended June 30, 2025
(In millions)Effective portion of derivative gain (loss) deferred in AOCIAmount of gain (loss) reclassified from AOCI into incomeInterest on fair value hedges
Cash flow hedges: 1
Hedges of floating-rate assets$2 $(18)$— 
Hedges of floating-rate liabilities— — — 
Fair value hedges: 2
Hedges of fixed-rate assets— — 14 
Hedges of fixed-rate liabilities— — (2)
Total derivatives designated as hedging instruments
$2 $(18)$12 
Six Months Ended June 30, 2025
(In millions)Effective portion of derivative gain (loss) deferred in AOCIAmount of gain (loss) reclassified from AOCI into incomeInterest on fair value hedges
Cash flow hedges: 1
Hedges of floating-rate assets$8 $(38)$— 
Hedges of floating-rate liabilities— 1 — 
Fair value hedges: 2
Hedges of fixed-rate assets— — 27 
Hedges of fixed-rate liabilities— — (5)
Total derivatives designated as hedging instruments
$8 $(37)$22 
Three Months Ended June 30, 2024
(In millions)Effective portion of derivative gain (loss) deferred in AOCIAmount of gain (loss) reclassified from AOCI into incomeInterest on fair value hedges
Cash flow hedges: 1
Hedges of floating-rate assets$(1)$(33)$— 
Hedges of floating-rate liabilities1 2 — 
Fair value hedges: 2
Hedges of fixed-rate assets— — 24 
Hedges of fixed-rate liabilities— — (2)
Total derivatives designated as hedging instruments
$— $(31)$22 
Six Months Ended June 30, 2024
(In millions)Effective portion of derivative gain (loss) deferred in AOCIAmount of gain (loss) reclassified from AOCI into incomeInterest on fair value hedges
Cash flow hedges: 1
Hedges of floating-rate assets$(6)$(69)$— 
Hedges of floating-rate liabilities5 4 — 
Fair value hedges: 2
Hedges of fixed-rate assets— — 46 
Hedges of fixed-rate liabilities— — (3)
Total derivatives designated as hedging instruments
$(1)$(65)$43 
1 For the 12 months following June 30, 2025, we estimate that $45 million of net losses from active and terminated cash flow hedges will be reclassified from AOCI into interest income, compared with an estimate of $88 million at June 30, 2024. At June 30, 2025, there were $60 million of losses deferred in AOCI related to terminated cash flow hedges that are expected to be fully reclassified into earnings by October 2027.
2 We had total cumulative unamortized basis adjustments from terminated fair value hedges of debt of $36 million and $43 million at June 30, 2025 and 2024, respectively. We had $3 million of cumulative unamortized basis adjustments from terminated fair value hedges of assets at both June 30, 2025 and 2024. Interest on fair value hedges presented above includes the amortization of the remaining unamortized basis adjustments.
Schedule of Gains (Losses) Recognized From Derivatives Not Designated as Accounting Hedges
The following schedule presents the amount of gains (losses) recognized from derivatives not designated as
accounting hedges:
Other Noninterest Income/(Expense)
(In millions)Three Months Ended June 30, 2025Six Months Ended June 30, 2025Three Months Ended June 30, 2024Six Months Ended June 30, 2024
Derivatives not designated as hedging instruments:
Customer-facing interest rate derivatives
$11 $18 $6 $12 
Other interest rate derivatives— (1)— 1 
Foreign exchange derivatives8 14 7 15 
Purchased credit derivatives(1)(1)— — 
Total derivatives not designated as hedging instruments
$18 $30 $13 $28 
Schedule of Fair Value Hedges
The following schedule presents derivatives used in fair value hedge accounting relationships, along with pre-tax gains (losses) recorded on these derivatives and the related hedged items for the periods presented:
Gains (losses) recorded in income
Three Months Ended June 30, 2025Three Months Ended June 30, 2024
(In millions)
Derivatives
Hedged itemsTotal income statement impact
Derivatives
Hedged itemsTotal income statement impact
Hedges of fixed-rate assets 1, 2
$(35)$35 $— $20 $(20)$— 
Hedges of fixed-rate debt 1, 2
4 (4)— — — — 
Gains (losses) recorded in income
Six Months Ended June 30, 2025Six Months Ended June 30, 2024
(In millions)
Derivatives
Hedged itemsTotal income statement impact
Derivatives
Hedged itemsTotal income statement impact
Hedges of fixed-rate assets 1, 2
$(115)$115 $— $118 $(118)$— 
Hedges of fixed-rate debt 1, 2
16 (16)— — — — 
1 Includes hedges of benchmark interest rate risk for fixed-rate long-term debt, fixed-rate AFS securities, and fixed-rate commercial loans. Gains and losses were recorded in interest income or expense, consistent with the hedged items.
2 The income/expense for derivatives does not reflect interest income/expense from periodic accruals and payments to be consistent with the presentation of the gains (losses) on the hedged items.
Schedule of Basis Adjustments for Hedged Items
The following schedule presents information regarding basis adjustments for hedged items in fair value hedging relationships:
Par value of hedged items
Carrying amount of the hedged items 1
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged items
(In millions)June 30,
2025		December 31, 2024June 30,
2025		December 31, 2024June 30,
2025		December 31, 2024
Hedges of fixed-rate assets 1, 2
$11,473 $11,388 $11,299 $11,099 $(174)$(289)
Hedges of fixed-rate debt 1
(500)(500)(509)(493)(9)7 
1 Carrying amounts exclude (1) issuance and purchase discounts or premiums, (2) unamortized issuance and acquisition costs, and (3) amounts related to terminated fair value hedges.
2 At June 30, 2025, the amortized cost basis of assets designated using the portfolio layer method was $9.8 billion; the cumulative basis adjustment associated with these hedging relationships was $29 million; and the notional amounts of the designated hedging instruments were $4.5 billion.