v3.26.1
Fair Value
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value FAIR VALUE
Fair Value Measurement

We measure certain financial assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or the price that would be paid to transfer a liability on the measurement date and is determined using an exit price in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The fair value hierarchy established by GAAP requires us to maximize the use of observable inputs when measuring fair value. For more information regarding the fair value hierarchy, see Note 14 Fair Value in our 2025 Form 10-K. Additionally, for more information regarding the fair value of assets and liabilities from our FirstBank acquisition, see Note 2 Acquisition Activity.
For more information on the valuation methodologies used to measure assets and liabilities at fair value on a recurring basis, see Note 14 Fair Value in our 2025 Form 10-K. The following table summarizes our assets and liabilities measured at fair value on a recurring basis, including instruments for which we have elected the fair value option.

Table 72: Fair Value Measurements – Recurring Basis Summary

 March 31, 2026December 31, 2025
In millionsLevel 1Level 2Level 3Total
Fair Value		Level 1Level 2Level 3Total
Fair Value
Assets
Residential mortgage loans held for sale$— $508 $74 $582 $— $552 $108 $660 
Commercial mortgage loans held for sale— 620 — 620 — 1,059 — 1,059 
Securities available-for-sale
U.S. Treasury and government agencies25,065 1,434 — 26,499 27,871 1,026 — 28,897 
Residential mortgage-backed
Agency— 35,653 — 35,653 — 30,663 — 30,663 
Non-agency— — 533 533 — — 548 548 
Commercial mortgage-backed
Agency— 3,412 — 3,412 — 3,372 — 3,372 
Non-agency— 147 79 226 — 173 79252 
Asset-backed— 2,225 84 2,309 — 2,210 87 2,297 
Other— 2,385 55 2,440 — 2,051 55 2,106 
Total securities available-for-sale25,065 45,256 751 71,072 27,871 39,495 769 68,135 
Loans— 519 599 1,118 — 492 620 1,112 
Equity investments (a) 718 — 2,341 3,408 820 — 2,503 3,642 
Residential mortgage servicing rights— — 2,786 2,786 — — 2,638 2,638 
Commercial mortgage servicing rights— — 1,030 1,030 — — 1,021 1,021 
Trading securities (b) 2,401 4,265 — 6,666 2,662 4,104 — 6,766 
Financial derivatives (b) (c)6 3,074 5 3,085 62,660 6 2,672 
Other assets503 135 15 653 506 162 14 682 
Total assets (d)$28,693 $54,377 $7,601 $91,020 $31,865 $48,524 $7,679 $88,387 
Liabilities
Interest-bearing deposits$— $728 $— $728 $— $3,642 $— $3,642 
Other borrowed funds 1,042 250 5 1,297 752 189 7 948 
Financial derivatives (c) (e) 7 3,967 35 4,009 1 3,546 79 3,626 
Other liabilities— 21 137 158 — 23 137 160 
Total liabilities (f) $1,049 $4,966 $177 $6,192 $753 $7,400 $223 $8,376 
(a)Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
(b)Included in Other assets on the Consolidated Balance Sheet.
(c)Amounts at March 31, 2026 and December 31, 2025 are presented gross and are not reduced by the impact of legally enforceable master netting agreements that allow us to net positive and negative positions and cash collateral held or placed with the same counterparty. See Note 13 Financial Derivatives for additional information related to derivative offsetting.
(d)Total assets at fair value as a percentage of total consolidated assets was 15% at both March 31, 2026 and December 31, 2025. Level 3 assets as a percentage of total assets at fair value was 8% and 9% at March 31, 2026 and December 31, 2025, respectively. Level 3 assets as a percentage of total consolidated assets was 1% at both March 31, 2026 and December 31, 2025.
(e)Included in Other liabilities on the Consolidated Balance Sheet.
(f)Total liabilities at fair value as a percentage of total consolidated liabilities was 1% and 2% at March 31, 2026 and December 31, 2025, respectively. Level 3 liabilities as a percentage of total liabilities at fair value was 3% at both March 31, 2026 and December 31, 2025. Level 3 liabilities as a percentage of total consolidated liabilities was less than 1% at both March 31, 2026 and December 31, 2025.
Reconciliations of assets and liabilities measured at fair value on a recurring basis using Level 3 inputs for the three months ended March 31, 2026 and 2025 are as follows:

Table 73: Reconciliation of Level 3 Assets and Liabilities
Three Months Ended March 31, 2026
   Total realized / unrealized
gains or losses for the 
period (a)		              Unrealized
gains/losses for the period
on assets and
liabilities held on
Consolidated
Balance Sheet at
Mar. 31, 2026 (a) (c)
Level 3 Instruments Only
In millions		Fair Value Dec. 31, 2025Included in
Earnings		Included
in Other
comprehensive
income (b)		PurchasesSalesIssuancesSettlementsTransfers
into
Level 3		Transfers
out of
Level 3		Impact from FirstBank AcquisitionFair
Value Mar. 31, 2026
Assets            
Residential mortgage
    loans held for sale		$108 $— $— $— $(33)$— $(2)$2 $(1)(d)$— $74 $—  
Securities available-for-sale
Residential mortgage-
  backed non-agency		548 3 (3)— — — (15)— — — 533 —  
Commercial mortgage-
  backed non-agency
79 — — — — — — — — — 79 —  
Asset-backed87 — — — — — (3)— — — 84 —  
Other55 1 — — — — (1)— — — 55 —  
Total securities
    available-for-sale		769 4 (3)— — — (19)— — — 751 —  
Loans620 2 — 6 — — (19)— (10)(d)— 599 2 
Equity investments2,503 (26)— 58 (194)— — — — — 2,341 (36) 
Residential mortgage
    servicing rights		2,638 (13)— 214 — 10 (73)— — 10 2,786 (13)
Commercial mortgage
    servicing rights		1,021 49 — 16 — 15 (71)— — — 1,030 49  
Financial derivatives 6 8 — — — — (9)— — — 5 9  
Other assets14 — — 1 — — — — — — 15 —  
Total assets $7,679 $24 $(3)$295 $(227)$25 $(193)$2 $(11)$10 $7,601 $11 
Liabilities 
Other borrowed funds$7 $— $— $— $— $3 $(5)$— $— $— $5 $—  
Financial derivatives 79 25 — — 8 — (77)— — — 35 32  
Other liabilities 137 (5)— — — 214 (209)— — — 137 (1) 
Total liabilities $223 $20 $— $— $8 $217 $(291)$— $— $— $177 $31  
Net gains (losses) $4 (e)        $(20)(f) 
(Continued from previous page)

Three Months Ended March 31, 2025
   Total realized / unrealized
gains or losses for the 
period (a)		            Unrealized
gains/losses for the
period
on assets and liabilities held on Consolidated Balance Sheet at Mar. 31, 2025 (a) (c)
Level 3 Instruments Only
In millions		Fair Value Dec. 31, 2024Included in EarningsIncluded in Other comprehensive income (b)PurchasesSalesIssuancesSettlementsTransfers into Level 3Transfers out of Level 3Fair Value Mar. 31, 2025
Assets             
Residential mortgage
   loans held for sale		$68 $— $— $41 $— $— $(4)$4 $(5)(d)$104 $— 
Commercial mortgage
    loans held for sale		4 — — — — — — — — 4 — 
Securities available-for-sale
Residential mortgage-
    backed non-agency		603 2 8 — — — (17)— — 596 — 
Commercial mortgage-
  backed non-agency		103 (3)(1)— — — — — — 99 (3)
Asset-backed93 1 1 — — — (3)— — 92 — 
Other54 — — — — — — — — 54 — 
Total securities
    available-for-sale		853 — 8 — — — (20)— — 841 (3)
Loans670 5 — 7 — — (19)— — 663 5 
Equity investments 2,111 46 — 176 (110)— — — — 2,223 25 
Residential mortgage
    servicing rights		2,626 (51)— 1 — 7 (60)— — 2,523 (51)
Commercial mortgage
    servicing rights		1,085 (2)— 27 — 9 (78)— — 1,041 (2)
Financial derivatives4 13 — — — — (7)— — 10 13 
Other assets10 — — 2 — — — — — 12 — 
Total assets$7,431 $11 $8 $254 $(110)$16 $(188)$4 $(5)$7,421 $(13)
Liabilities
Other borrowed funds$10 $— $— $— $— $5 $(2)$— $— $13 $— 
Financial derivatives150 37 — — — — (26)— — 161 38 
Other liabilities177 10 — — — — (58)— — 129 7 
Total liabilities$337 $47 $— $— $— $5 $(86)$— $— $303 $45 
Net gains (losses)$(36)(e)$(58)(f)
(a)Losses for assets are bracketed while losses for liabilities are not.
(b)The difference in unrealized gains and losses for the period included in Other comprehensive income and changes in unrealized gains and losses for the period included in Other comprehensive income for securities available-for-sale held at the end of the reporting period were insignificant.
(c)The amount of the total gains or losses for the period included in earnings that is attributable to the change in unrealized gains or losses related to those assets and liabilities held at the end of the reporting period.
(d)Residential mortgage loan transfers out of Level 3 are primarily driven by residential mortgage loans transferring to OREO as well as reclassification of mortgage loans held for sale to held for investment.
(e)Net gains (losses) realized and unrealized included in earnings related to Level 3 assets and liabilities included amortization and accretion. The amortization and accretion amounts are included in Interest income on the Consolidated Income Statement and the remaining net gains (losses) realized and unrealized are included in Noninterest income on the Consolidated Income Statement.
(f)Net unrealized gains (losses) related to assets and liabilities held at the end of the reporting period are included in Noninterest income on the Consolidated Income Statement.

An instrument’s categorization within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. Changes from one quarter to the next related to the observability of inputs to a fair value measurement may result in a reclassification (transfer) of assets or liabilities between hierarchy levels.
Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities follows:

Table 74: Fair Value Measurements – Recurring Quantitative Information

March 31, 2026
Level 3 Instruments Only
Dollars in millions		Fair ValueValuation TechniquesUnobservable InputsRange (Weighted-Average) (a)
March 31, 2026
Residential mortgage-backed
    non-agency securities		533 Priced by a third-party vendor using a discounted cash flow pricing modelConstant prepayment rate
1.0% - 23.1% (2.1%)
Constant default rate
0.0% - 13.5% (2.0%)
Loss severity
41.9% weighted-average
Spread over the benchmark curve (b)
158bps weighted-average
Loans - residential real estate non- government insured460 Consensus pricing (c)Cumulative default rate
3.6% - 100.0% (53.5%)
Loss severity
5.2% weighted-average
Discount rate
5.5% - 7.5% (5.7%)
Equity investments 2,341 Multiple of adjusted earningsMultiple of earnings
5.5x - 22.0x (10.8x)
Residential mortgage servicing rights2,786 Discounted cash flowConstant prepayment rate
0.0% - 42.9% (6.8%)
Spread over the benchmark curve (b)
343bps - 1,658bps (709bps)
Commercial mortgage servicing rights1,030 Discounted cash flowConstant prepayment rate
4.2% - 7.1% (4.4%)
Discount rate
8.8% - 11.1% (10.8%)
Insignificant Level 3 assets, net of
    liabilities (d)		274 
Total Level 3 assets, net of liabilities (e)$7,424 
December 31, 2025
Residential mortgage loans held for sale$108 Consensus pricing (c)Cumulative default rate
3.6% - 100.0% (33.8%)
Loss severity
5.7% weighted-average
Discount rate
5.5% - 9.0% (5.9%)
Residential mortgage-backed
    non-agency securities		548 Priced by a third-party vendor using a discounted cash flow pricing modelConstant prepayment rate
1.0% - 23.1% (3.7%)
Constant default rate
0.0% - 13.5% (1.9%)
Loss severity
15.0% - 100.0% (42.5%)
Spread over the benchmark curve (b)
176bps weighted-average
Loans - residential real estate
non-government insured
474 Consensus pricing (c)Cumulative default rate
3.6% - 100.0% (52.7%)
Loss severity
5.0% weighted-average
Discount rate
5.5% - 7.5% (5.7%)
Equity investments2,503 Multiple of adjusted earningsMultiple of earnings
5.5x - 24.0x (10.8x)
Residential mortgage servicing rights2,638 Discounted cash flowConstant prepayment rate
0.0% - 41.4% (6.7%)
Spread over the benchmark curve (c)
314bps - 3,270bps (734bps)
Commercial mortgage servicing rights1,021 Discounted cash flowConstant prepayment rate
4.3% - 7.0% (4.4%)
Discount rate
8.7% - 10.9% (10.6%)
Insignificant Level 3 assets, net of
    liabilities (d)		164 
Total Level 3 assets, net of liabilities (e)$7,456 
(a)Unobservable inputs were weighted by the relative fair value of the instruments.
(b)The assumed yield spread over the benchmark curve for each instrument is generally intended to incorporate non-interest rate risks, such as credit and liquidity risks.
(c)Consensus pricing refers to fair value estimates that are generally internally developed using information such as dealer quotes or other third-party provided valuations or comparable asset prices.
(d)Represents the aggregate amount of Level 3 assets and liabilities measured at fair value on a recurring basis that are individually and in the aggregate insignificant. The amount includes certain financial derivative assets and liabilities, certain debt securities available-for-sale, government insured residential real estate loans, home equity loans, other assets, other borrowed funds and other liabilities. At March 31, 2026, this amount also includes residential mortgage loans held for sale.
(e)Consists of total Level 3 assets of $7.6 billion and total Level 3 liabilities of $0.2 billion as of March 31, 2026 and $7.7 billion and $0.2 billion as of December 31, 2025, respectively.
Financial Assets Accounted for at Fair Value on a Nonrecurring Basis

We may be required to measure certain financial assets at fair value on a nonrecurring basis. These adjustments to fair value usually result from the application of lower of amortized cost or fair value accounting or write-downs of individual assets due to impairment and are included in Table 75. For more information regarding the valuation methodologies of our financial assets measured at fair value on a nonrecurring basis, see Note 14 Fair Value in our 2025 Form 10-K.
Assets measured at fair value on a nonrecurring basis follow:

Table 75: Fair Value Measurements – Nonrecurring (a) (b) (c)
 Fair Value Gains (Losses)
Three months ended
In millionsMarch 31
2026		December 31
2025		March 31
2026		March 31
2025
Assets
Nonaccrual loans$398 $510 $(28)$(83)
Equity investments51 147 (6)(6)
Loans held for sale— 13 — (4)
OREO, foreclosed and other assets48 49 (1)— 
Long-lived assets6 6 (1)(2)
Total assets$503 $725 $(36)$(95)
(a)All Level 3 for the periods presented except for $13 million included in Loans held for sale categorized as Level 2 at December 31, 2025.
(b)Valuation techniques applied are fair value of property or collateral and discounted cash flow.
(c)Unobservable inputs used are appraised value/sales price, broker opinions, market rate of return or projected income/required improvement costs. Additional quantitative information is not meaningful for the periods presented.
Financial Instruments Accounted for under Fair Value Option

We elect the fair value option to account for certain financial instruments. For more information on these financial instruments for
which the fair value option election has been made, see Note 14 Fair Value in our 2025 Form 10-K.

Fair values and aggregate unpaid principal balances of items for which we elected the fair value option are as follows:

Table 76: Fair Value Option – Fair Value and Principal Balances
March 31, 2026December 31, 2025
In millionsFair Value (a)Aggregate Unpaid
Principal Balance		DifferenceFair Value (a)Aggregate Unpaid
Principal Balance		Difference
Assets
Residential mortgage loans held for sale
Accruing loans less than 90 days past due$562 $563 $(1)$641 $636 $5 
Accruing loans 90 days or more past due6 6 — 5 5 — 
Nonaccrual loans14 16 (2)14 15 (1)
Total$582 $585 $(3)$660 $656 $4 
Commercial mortgage loans held for sale (b) (c)
Accruing loans less than 90 days past due$620 $617 $3 $1,059 $1,059 $— 
Loans
Accruing loans less than 90 days past due$704 $785 $(81)$716 $796 $(80)
Accruing loans 90 days or more past due190 202 (12)159 172 (13)
Nonaccrual loans224 311 (87)237 327 (90)
Total$1,118 $1,298 $(180)$1,112 $1,295 $(183)
Other assets$135 $131 $4 $162 $154 $8 
Liabilities
Interest-bearing deposits $728 $729 $(1)$3,642 $3,641 $1 
Other borrowed funds$34 $35 $(1)$31 $32 $(1)
Other liabilities with contractual unpaid principal balance$23 $25 $(2)$23 $25 $(2)
Other liabilities without contractual unpaid principal balance$126 $— $126 $122 $— $122 
(a)Amounts exclude accrued interest.
(b)There were no accruing loans 90 days or more past due within this category at March 31, 2026 or December 31, 2025.
(c)There were no nonaccrual loans within this category at March 31, 2026 or December 31, 2025.
The changes in fair value for items for which we elected the fair value option are as follows:

Table 77: Fair Value Option – Changes in Fair Value Included in Earnings (a)(b)
Gains (Losses)
 Three months ended
March 31March 31
In millions20262025
Assets
Residential mortgage loans held for sale$7 $(4)
Commercial mortgage loans held for sale$16 $11 
Loans$4 $7 
Other assets$1 $(9)
Liabilities
Interest-bearing deposits$1 $(1)
Other liabilities$1 $(7)
(a)Amounts exclude interest income and interest expense.
(b)The impact on earnings of offsetting hedged items or hedging instruments is not reflected in these amounts.
Additional Fair Value Information Related to Financial Instruments Not Recorded at Fair Value
The following table presents the carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of all other financial instruments that are not recorded on our Consolidated Balance Sheet at fair value as of March 31, 2026 and December 31, 2025. For more information regarding the methods and assumptions used to estimate the fair values of financial instruments included in Table 78, see Note 14 Fair Value in our 2025 Form 10-K.
Table 78: Additional Fair Value Information Related to Other Financial Instruments

 CarryingFair Value
In millionsAmountTotalLevel 1Level 2Level 3
March 31, 2026
Assets
Cash and due from banks$5,646 $5,646 $5,646 $— $— 
Interest-earning deposits with banks 26,053 26,053 25,288 765 — 
Securities held-to-maturity72,045 69,468 16,869 52,440 159 
Net loans (excludes leases)348,137 346,057 — — 346,057 
Other assets5,677 5,677 — 5,677 — 
Total assets$457,558 $452,901 $47,803 $58,882 $346,216 
Liabilities
Time deposits$33,216 $33,396 $— $33,396 $— 
Borrowed funds65,301 66,082 — 65,647 435 
Unfunded lending related commitments832 832 — — 832 
Other liabilities1,234 1,234 — 1,234 — 
Total liabilities$100,583 $101,544 $— $100,277 $1,267 
December 31, 2025
Assets
Cash and due from banks$6,777 $6,777 $6,777 $— $— 
Interest-earning deposits with banks 32,936 32,936 31,975 961 — 
Securities held-to-maturity70,109 67,979 19,564 48,247 168 
Net loans (excludes leases)318,869 316,005 — — 316,005 
Other assets5,109 5,109 — 5,109 — 
Total assets$433,800 $428,806 $58,316 $54,317 $316,173 
Liabilities
Time deposits$30,361 $30,576 $— $30,576 $— 
Borrowed funds56,097 57,289 — 56,793 496 
Unfunded lending related commitments818 818 — — 818 
Other liabilities1,091 1,091 — 1,091 — 
Total liabilities$88,367 $89,774 $— $88,460 $1,314 

The aggregate fair values in Table 78 represent only a portion of the total market value of our assets and liabilities as, in accordance with the guidance related to fair values about financial instruments, we exclude the following:
•financial instruments recorded at fair value on a recurring basis (as they are disclosed in Table 72),
•investments accounted for under the equity method,
•equity securities without a readily determinable fair value that apply for the alternative measurement approach to fair value under ASU 2016-01,
•real and personal property,
•lease financing,
•loan customer relationships,
•deposit customer intangibles,
•retail branch networks,
•fee-based businesses, such as asset management and brokerage,
•trade receivables and payables due in one year or less,
•deposit liabilities with no defined or contractual maturities under ASU 2016-01, and
•insurance contracts.