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FAIR VALUE MEASUREMENTS
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS
NOTE 12 - FAIR VALUE MEASUREMENTS
The Company measures or monitors many of its assets and liabilities on a fair value basis. Fair value is used on a recurring basis for assets and liabilities for which fair value is the required or elected measurement basis of accounting. Fair value is also used on a nonrecurring basis to evaluate assets for impairment or for disclosure purposes. Nonrecurring fair value adjustments typically involve the application of lower of cost or market accounting or write-downs of individual assets. Fair value measurement guidance is also applied to disclosures in this Note related to assets and liabilities that are not required to be reported at fair value in the financial statements.
For more information on the measurement of fair value for the Company’s assets and liabilities, including the election of the fair value option and valuation techniques utilized to measure fair value on a recurring and nonrecurring basis, see Note 18 in the Company’s 2025 Form 10-K.
Fair Value Option
The Company has elected to account for residential mortgage LHFS and certain commercial LHFS under the fair value option. Under the fair value option, residential mortgage LHFS and certain commercial LHFS are initially measured at fair value with subsequent changes in fair value recognized in Mortgage banking fees and Capital markets fees, respectively, in the Consolidated Statements of Operations. The following table presents the difference between the aggregate fair value and the aggregate unpaid principal balance of LHFS measured at fair value:
March 31, 2026December 31, 2025
(dollars in millions)Aggregate Fair ValueAggregate Unpaid PrincipalAggregate Fair Value Greater (Less) Than Aggregate Unpaid PrincipalAggregate Fair ValueAggregate Unpaid PrincipalAggregate Fair Value Greater (Less) Than Aggregate Unpaid Principal
Residential mortgage loans held for sale
$778 $770 $8 $895 $872 $23 
Commercial loans held for sale
139 147 (8)170 185 (15)
Recurring Fair Value Measurements
The Company utilizes a variety of valuation techniques to measure its assets and liabilities at fair value on a recurring basis. The following table presents assets and liabilities measured at fair value, including gross derivative assets and liabilities, on a recurring basis at March 31, 2026:
(dollars in millions)TotalLevel 1Level 2Level 3
Debt securities available for sale:
Mortgage-backed securities$31,937 $— $31,937 $— 
Collateralized loan obligations89 — 89 — 
State and political subdivisions1 — 1 — 
U.S. Treasury and other4,334 4,334 — — 
Total debt securities available for sale36,361 4,334 32,027 — 
Loans held for sale:
Residential loans held for sale
778 — 778 — 
Commercial loans held for sale
139 — 139 — 
Total loans held for sale, at fair value
917 — 917 — 
Mortgage servicing rights1,462 — — 1,462 
Derivative assets:
Interest rate contracts411 — 411 — 
Foreign exchange contracts528 — 528 — 
Commodities contracts717 — 717 — 
TBA contracts29 — 29 — 
Other contracts7 — 2 5 
Total derivative assets1,692 — 1,687 5 
Equity securities, at fair value(1)
269 269 — — 
Short-term investments
65 30 35 — 
Total assets$40,766 $4,633 $34,666 $1,467 
Derivative liabilities:
Interest rate contracts$468 $— $468 $— 
Foreign exchange contracts366 — 366 — 
Commodities contracts661 — 661 — 
TBA contracts20 — 20 — 
Other contracts4 — — 4 
Total derivative liabilities1,519 — 1,515 4 
Short-term borrowed funds
54 40 14 — 
Other liabilities
113 — 113 — 
Total liabilities$1,686 $40 $1,642 $4 
(1) Excludes investments of $67 million included in Other assets in the Consolidated Balance Sheets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient. These investments include capital contributions to private investment funds and have unfunded capital commitments of $14 million at March 31, 2026, which may be called at any time during prescribed time periods. The credit exposure is generally limited to the carrying amount of investments made and unfunded capital commitments.
The following table presents assets and liabilities measured at fair value, including gross derivative assets and liabilities, on a recurring basis at December 31, 2025:
(dollars in millions)TotalLevel 1Level 2Level 3
Debt securities available for sale:
Mortgage-backed securities$32,484 $— $32,484 $— 
Collateralized loan obligations89 — 89 — 
State and political subdivisions1 — 1 — 
U.S. Treasury and other3,123 3,123 — — 
Total debt securities available for sale35,697 3,123 32,574 — 
Loans held for sale:
Residential loans held for sale
895 — 895 — 
Commercial loans held for sale
170 — 170 — 
Total loans held for sale, at fair value
1,065 — 1,065 — 
Mortgage servicing rights1,455 — — 1,455 
Derivative assets:
Interest rate contracts553 — 553 — 
Foreign exchange contracts510 — 510 — 
Commodities contracts458 — 458 — 
TBA contracts2 — 2 — 
Other contracts9 — 1 8 
Total derivative assets1,532 — 1,524 8 
Equity securities, at fair value(1)
251 251 — — 
Short-term investments
72 40 32 — 
Total assets$40,072 $3,414 $35,195 $1,463 
Derivative liabilities:
Interest rate contracts$471 $— $471 $— 
Foreign exchange contracts373 — 373 — 
Commodities contracts405 — 405 — 
TBA contracts6 — 6 — 
Other contracts3 — — 3 
Total derivative liabilities1,258 — 1,255 3 
Short-term borrowed funds
52 40 12 — 
Other liabilities
157 — 157 — 
Total liabilities$1,467 $40 $1,424 $3 
(1) Excludes investments of $66 million included in Other assets in the Consolidated Balance Sheets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient. These investments include capital contributions to private investment funds and have unfunded capital commitments of $14 million at December 31, 2025, which may be called at any time during prescribed time periods. The credit exposure is generally limited to the carrying amount of investments made and unfunded capital commitments.
The following tables present a roll forward of the balance sheet amounts for assets and liabilities measured at fair value on a recurring basis and classified as Level 3:
Three Months Ended March 31, 2026
(dollars in millions)Mortgage Servicing RightsOther Derivative Contracts
Beginning balance$1,455 $5 
Issuances48 17 
Settlements(2)
(46)(9)
Changes in fair value recognized in earnings(3)
5 (12)
Ending balance$1,462 $1 
Three Months Ended March 31, 2025
(dollars in millions)Mortgage Servicing RightsOther Derivative Contracts
Beginning balance$1,491 $1 
Issuances27 16 
Sales(1)
(72)— 
Settlements(2)
(39)(16)
Changes in fair value recognized in earnings(3)
(10)4 
Ending balance$1,397 $5 
(1) For MSRs, represents the sale of the excess servicing yield on MSRs.
(2) For MSRs, represents changes in value of the MSRs due to i) the passage of time including the impact from both regularly scheduled loan principal payments and partial paydowns, and ii) loans that paid off during the period. For other derivative contracts, represents the closeout of interest rate lock commitments and other cash payments.
(3) Represents changes in fair value primarily driven by market conditions. These changes are recorded in Mortgage banking fees and Other income in the Consolidated Statements of Operations.
The following table presents quantitative information about significant unobservable inputs utilized to measure the fair value of Level 3 assets and liabilities:
March 31, 2026December 31, 2025
Financial Instrument(1)
Valuation TechniqueUnobservable InputRange (Weighted Average)Range (Weighted Average)
Mortgage servicing rightsDiscounted Cash FlowConstant prepayment rate
5-15% CPR (7% CPR)
6-15% CPR (7% CPR)
Option adjusted spread
398-1,038 bps (574 bps)
398-1,038 bps (588 bps)
Other derivative contractsInternal ModelPull through rate
18-100% (85%)
8-100% (85%)
MSR value
34-181 bps (136 bps)
25-177 bps (134 bps)
(1) Disclosures related to the fair value measurement of financial instruments deemed immaterial are not included.
Nonrecurring Fair Value Measurements
Fair value is also used on a nonrecurring basis to evaluate certain assets for impairment or for disclosure purposes. The following table presents losses recorded in earnings on assets measured at fair value on a nonrecurring basis, regardless of whether the asset is still held at period end:
Three Months Ended March 31,
(dollars in millions)20262025
Collateral-dependent loans ($26)($59)

The following table presents the carrying amount and fair value hierarchy of assets that were held as of the period end indicated and for which a nonrecurring fair value adjustment was recorded in earnings during the year. Carrying amount represents the fair value of the asset as of its measurement date, or date on which a nonrecurring fair value adjustment was recorded.
March 31, 2026December 31, 2025
(dollars in millions)TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3
Collateral-dependent loans $87 $— $17 $70 $135 $— $24 $111 
Fair Value of Financial Instruments
The following tables present the estimated fair value for financial instruments not recorded at fair value in the Consolidated Financial Statements. The carrying amounts are recorded in the Consolidated Balance Sheets under the indicated captions.
March 31, 2026
TotalLevel 1Level 2Level 3
(dollars in millions)Carrying ValueEstimated Fair ValueCarrying ValueEstimated Fair ValueCarrying ValueEstimated Fair ValueCarrying ValueEstimated Fair Value
Financial assets(1):
Debt securities held to maturity$7,800 $6,998 $— $— $7,484 $6,684 $316 $314 
Loans held for sale
620 620 — — — — 620 620 
Net loans and leases141,709 142,607 — — 458 458 141,251 142,149 
Other assets836 836 — — 788 788 48 48 
Financial liabilities:
Deposits184,035 183,980 — — 184,035 183,980 — — 
Short-term borrowed funds— — — — — — — — 
Long-term borrowed funds12,260 12,083 — — 12,260 12,083 — — 
December 31, 2025
TotalLevel 1Level 2Level 3
(dollars in millions)Carrying ValueEstimated Fair ValueCarrying ValueEstimated Fair ValueCarrying ValueEstimated Fair ValueCarrying ValueEstimated Fair Value
Financial assets(1):
Debt securities held to maturity $7,933 $7,150 $— $— $7,595 $6,812 $338 $338 
Loans held for sale
133 133 — — — — 133 133 
Net loans and leases140,749 140,131 — — 437 437 140,312 139,694 
Other assets807 807 — — 768 768 39 39 
Financial liabilities:
Deposits183,313 183,277 — — 183,313 183,277 — — 
Short-term borrowed funds6 6 — — 6 6 — — 
Long-term borrowed funds11,224 11,472 — — 11,224 11,472 — — 
(1) Excludes cash-related financial instruments not recorded at fair value in the Consolidated Balance Sheets with a carrying value and estimated fair value of $13.1 billion and $13.6 billion at March 31, 2026 and December 31, 2025, respectively.