Fair Value (Tables)

3 Months Ended

Mar. 31, 2026

Schedule of Fair Value, Assets and Liabilities Measured on a Recurring Basis

The following tables display the assets and liabilities measured at fair value on a recurring basis including financial instruments elected for the fair value option. We often economically hedge the fair value change of our assets or liabilities with derivatives. The tables below display the hedges separately from the hedged items; therefore, they do not directly display the impact of our risk-management activities.


	Recurring fair value measurements
March 31, 2026 ($ in millions)	Level 1		Level 2		Level 3		Total
Assets
Investment securities
Equity securities (a) (b)	$	804	$	—	$	—	$	804
Available-for-sale securities
Debt securities
U.S. Treasury and federal agencies	2,397		—		—		2,397
U.S. States and political subdivisions	—		483		34		517
Foreign government	32		167		—		199
Agency mortgage-backed residential	—		12,695		—		12,695
Mortgage-backed residential	—		193		—		193
Agency mortgage-backed commercial	—		5,107		—		5,107

Asset-backed	—		2		—		2
Corporate debt	—		1,928		—		1,928
Total available-for-sale securities	2,429		20,575		34		23,038






Derivative contracts in a receivable position
Interest rate	—		1		—		1
Foreign exchange	—		2		—		2


Total derivative contracts in a receivable position	—		3		—		3

Total assets	$	3,233	$	20,578	$	34	$	23,845
Liabilities
Accrued expenses and other liabilities
Derivative contracts in a payable position
Interest rate	$	—	$	1	$	—	$	1

Credit	—		—		1		1
Equity	1		—		—		1
Total derivative contracts in a payable position	1		1		1		3

Total liabilities	$	1	$	1	$	1	$	3

(a)Our direct investment in any one industry did not exceed 15%. When performing the concentration calculation, mutual funds and ETFs are not allocated to any one industry.

(b)Excludes $59 million of equity securities that are measured at fair value using the net asset value practical expedient and therefore are not classified in the fair value hierarchy.


	Recurring fair value measurements
December 31, 2025 ($ in millions)	Level 1		Level 2		Level 3		Total
Assets
Investment securities
Equity securities (a) (b)	$	819	$	—	$	—	$	819
Available-for-sale securities
Debt securities
U.S. Treasury and federal agencies	2,279		—		—		2,279
U.S. States and political subdivisions	—		517		34		551
Foreign government	31		157		—		188
Agency mortgage-backed residential	—		12,901		—		12,901
Mortgage-backed residential	—		198		—		198
Agency mortgage-backed commercial	—		4,932		—		4,932

Asset-backed	—		12		—		12
Corporate debt	—		1,912		—		1,912
Total available-for-sale securities	2,310		20,629		34		22,973












Total assets	$	3,129	$	20,629	$	34	$	23,792
Liabilities
Accrued expenses and other liabilities
Derivative contracts in a payable position

Foreign exchange	$	—	$	4	$	—	$	4


Total derivative contracts in a payable position	—		4		—		4

Total liabilities	$	—	$	4	$	—	$	4

(a)Our direct investment in any one industry did not exceed 11%. When performing the concentration calculation, mutual funds and ETFs are not allocated to any one industry.

(b)Excludes $57 million of equity securities that are measured at fair value using the net asset value practical expedient and therefore are not classified in the fair value hierarchy.

Schedule of Fair Value, Assets Measured on a Recurring Basis, Unobservable Input Reconciliation

The following tables present the reconciliation for all Level 3 assets and liabilities measured at fair value on a recurring basis. We often economically hedge the fair value change of our assets or liabilities with derivatives and other financial instruments. The Level 3 items presented below may be hedged by derivatives and other financial instruments that are classified as Level 1 or Level 2. Thus, the following tables do not fully reflect the impact of our risk-management activities.


	Available-for-sale securities					Loans held-for-sale (a)
($ in millions)		2026		2025			2026		2025
Assets
Fair value at January 1,		$	34	$	35		$	—	$	5
Net realized/unrealized gains
Included in earnings		—		—			—		—
Included in OCI		—		—			—		—
Purchases and originations		—		—			—		8
Sales		—		—			—		(10)
Issuances		—		—			—		—
Settlements		—		—			—		—
Transfers into Level 3		—		—			—		—
Transfers out of Level 3		—		—			—		—
Fair value at March 31,		$	34	$	35		$	—	$	3
Net unrealized gains still held at March 31,
Included in earnings		$	—	$	—		$	—	$	—
Included in OCI		—		—			—		—

(a)Consumer mortgage loans carried at fair value due to fair value option elections.


	Derivative liabilities, net of derivative assets (a)
($ in millions)	2026		2025
Liabilities
Fair value at January 1,	$	—	$	3
Net realized/unrealized losses (gains)
Included in earnings	1		(1)
Included in OCI	—		—
Purchases and originations	—		—
Sales	—		—
Issuances	—		—
Settlements	—		—
Transfers into Level 3	—		—
Transfers out of Level 3 (b)	—		2
Fair value at March 31,	$	1	$	4
Net unrealized losses still held at March 31,
Included in earnings	$	1	$	—
Included in OCI	—		—

(a)Net realized/unrealized losses (gains) are reported as (loss) gain on mortgage and automotive loans, net, and other income, net of losses, in our Condensed Consolidated Statement of Comprehensive Income.

(b)Represents the settlement value of interest rate derivative assets that are transferred to loans held-for-sale within Level 2 of the fair value hierarchy during the three months ended March 31, 2025. These transfers are deemed to have occurred at the end of the reporting period.

Schedule of Fair Value Measurements - Nonrecurring Basis

The following tables display assets and liabilities measured at fair value on a nonrecurring basis and still held at March 31, 2026, and December 31, 2025, respectively. The amounts are generally as of the end of each period presented, which approximate the fair value measurements that occurred during each period.


	Nonrecurring fair value measurements								Lower-of-cost-or-fair-value reserve, valuation reserve, or cumulative adjustments		Total gain (loss) included in earnings
March 31, 2026 ($ in millions)	Level 1		Level 2		Level 3		Total
Assets




Loans held-for-sale, net	$	—	$	—	$	336	$	336	$	(15)	n/m	(a)






Commercial finance receivables and loans, net (b)

Other	—		—		12		12		(96)		n/m	(a)
Total commercial finance receivables and loans, net	—		—		12		12		(96)		n/m	(a)
Other assets
Nonmarketable equity investments	—		—		2		2		(1)		n/m	(a)


Repossessed and foreclosed assets (c)	—		—		8		8		(1)		n/m	(a)

Total assets	$	—	$	—	$	358	$	358	$	(113)	n/m

n/m = not meaningful

(a)We consider the applicable valuation reserve, allowance for loan losses, or cumulative adjustments to be the most relevant indicator of the impact on earnings caused by the fair value measurement. Accordingly, the table above excludes total gains and losses included in earnings for these items. The carrying values are inclusive of the respective valuation reserve, loan loss allowance, or cumulative adjustment.

(b)Represents collateral-dependent loans held for investment for which a nonrecurring measurement was made. The related allowance for loan losses represents the cumulative fair value adjustments for those specific receivables.

(c)The allowance provided for repossessed and foreclosed assets represents any cumulative valuation adjustment recognized to adjust the assets to fair value.


	Nonrecurring fair value measurements								Lower-of-cost-or-fair-value reserve, valuation reserve, or cumulative adjustments		Total gain (loss) included in earnings
December 31, 2025 ($ in millions)	Level 1		Level 2		Level 3		Total
Assets




Loans held-for-sale, net	$	—	$	—	$	545	$	545	$	(32)	n/m	(a)






Commercial finance receivables and loans, net (b)

Other	—		—		27		27		(97)		n/m	(a)
Total commercial finance receivables and loans, net	—		—		27		27		(97)		n/m	(a)
Other assets
Nonmarketable equity investments	—		9		1		10		4		n/m	(a)


Repossessed and foreclosed assets (c)	—		—		7		7		(1)		n/m	(a)

Total assets	$	—	$	9	$	580	$	589	$	(126)	n/m

n/m = not meaningful

(c)The allowance provided for repossessed and foreclosed assets represents any cumulative valuation adjustment recognized to adjust the assets to fair value.

Schedule of Fair Value, by Balance Sheet Grouping

The following table presents the carrying and estimated fair value of financial instruments, except for those recorded at fair value on a recurring basis presented in the previous section of this note titled Recurring Fair Value. When possible, we use quoted market prices to determine fair value. Where quoted market prices are not available, the fair value is internally derived based on appropriate valuation methodologies with respect to the amount and timing of future cash flows and estimated discount rates. However, considerable judgment is required in interpreting current market data to develop the market assumptions and inputs necessary to estimate fair value. As such, the actual amount received to sell an asset or the amount paid to settle a liability could differ from our estimates. Fair value information presented herein was based on information available at March 31, 2026, and December 31, 2025.


			Estimated fair value
($ in millions)	Carrying value		Level 1		Level 2		Level 3		Total
March 31, 2026
Financial assets
Held-to-maturity securities	$	4,337	$	—	$	4,387	$	—	$	4,387
Loans held-for-sale, net	337		—		—		338		338
Finance receivables and loans, net	136,350		—		—		139,266		139,266
FHLB/FRB stock (a)	789		—		789		—		789
Financial liabilities
Deposit liabilities	$	40,215	$	—	$	—	$	40,362	$	40,362
Short-term borrowings	4,126		—		—		4,123		4,123
Long-term debt	17,349		—		12,891		5,469		18,360
December 31, 2025
Financial assets
Held-to-maturity securities	$	4,371	$	—	$	4,451	$	—	$	4,451
Loans held-for-sale, net	549		—		—		560		560
Finance receivables and loans, net	133,964		—		—		137,579		137,579
FHLB/FRB stock (a)	811		—		811		—		811
Financial liabilities
Deposit liabilities	$	42,310	$	—	$	—	$	42,523	$	42,523
Short-term borrowings	4,695		—		—		4,706		4,706
Long-term debt	17,070		—		12,642		5,707		18,349

(a)Included in other assets on our Condensed Consolidated Balance Sheet.

- 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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