v3.26.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Bancorp measures certain financial assets and liabilities at fair value in accordance with U.S. GAAP, which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP also establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the instrument’s fair value measurement. For more information regarding the fair value hierarchy, refer to Note 1 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2025.

Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables summarize assets and liabilities measured at fair value on a recurring basis as of:
Fair Value Measurements Using
March 31, 2026 ($ in millions)Level 1Level 2Level 3Total Fair Value
Assets:
Available-for-sale debt and other securities:
U.S. Treasury and federal agencies securities$3,454 — — 3,454 
Mortgage-backed securities:
Agency residential mortgage-backed securities— 14,594 — 14,594 
Agency commercial mortgage-backed securities— 22,238 — 22,238 
Non-agency commercial mortgage-backed securities— 2,751 — 2,751 
Asset-backed securities and other debt securities— 2,326 — 2,326 
Available-for-sale debt and other securities(a)
3,454 41,909 — 45,363 
Trading debt securities:
U.S. Treasury and federal agencies securities662 36 — 698 
Obligations of states and political subdivisions securities— 97 — 97 
Agency residential mortgage-backed securities— 50 — 50 
Asset-backed securities and other debt securities— 824 — 824 
Trading debt securities662 1,007 — 1,669 
Equity securities524 20 — 544 
Residential mortgage loans held for sale— 714 — 714 
Residential mortgage loans(b)
— — 105 105 
Servicing rights— — 1,583 1,583 
Derivative assets:
Interest rate contracts10 563 7 580 
Foreign exchange contracts— 553 — 553 
Commodity contracts156 2,041 — 2,197 
Derivative assets(c)
166 3,157 7 3,330 
Total assets$4,806 46,807 1,695 53,308 
Liabilities:
Derivative liabilities:
Interest rate contracts$1 726 10 737 
Foreign exchange contracts— 486 — 486 
Equity contracts— — 82 82 
Commodity contracts396 1,800 — 2,196 
Derivative liabilities(d)
397 3,012 92 3,501 
Short positions:
U.S. Treasury and federal agencies securities188 1 — 189 
Asset-backed securities and other debt securities— 156 — 156 
Equity securities44 — — 44 
Short positions(d)
232 157 — 389 
Total liabilities$629 3,169 92 3,890 
(a)Excludes FHLB, FRB and DTCC restricted stock holdings totaling $204, $591 and $3, respectively, at March 31, 2026.
(b)Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment.
(c)Included in other assets in the Condensed Consolidated Balance Sheets.
(d)Included in other liabilities in the Condensed Consolidated Balance Sheets.
Fair Value Measurements Using
December 31, 2025 ($ in millions)Level 1Level 2Level 3Total Fair Value
Assets:
Available-for-sale debt and other securities:
U.S. Treasury and federal agencies securities$1,575 — — 1,575 
Mortgage-backed securities:
Agency residential mortgage-backed securities— 8,623 — 8,623 
Agency commercial mortgage-backed securities— 20,187 — 20,187 
Non-agency commercial mortgage-backed securities— 2,833 — 2,833 
Asset-backed securities and other debt securities— 2,267 — 2,267 
Available-for-sale debt and other securities(a)
1,575 33,910 — 35,485 
Trading debt securities:
U.S. Treasury and federal agencies securities482 12 — 494 
Obligations of states and political subdivisions securities— 63 — 63 
Agency residential mortgage-backed securities— 49 — 49 
Asset-backed securities and other debt securities— 451 — 451 
Trading debt securities482 575 — 1,057 
Equity securities436 17 — 453 
Residential mortgage loans held for sale— 658 — 658 
Residential mortgage loans(b)
— — 106 106 
Servicing rights— — 1,598 1,598 
Derivative assets:
Interest rate contracts1 457 5 463 
Foreign exchange contracts— 659 — 659 
Commodity contracts224 522 — 746 
Derivative assets(c)
225 1,638 5 1,868 
Total assets$2,718 36,798 1,709 41,225 
Liabilities:
Derivative liabilities:
Interest rate contracts$3 537 4 544 
Foreign exchange contracts— 628 — 628 
Equity contracts— — 124 124 
Commodity contracts35 703 — 738 
Derivative liabilities(d)
38 1,868 128 2,034 
Short positions:
U.S. Treasury and federal agencies securities82 3 — 85 
Asset-backed securities and other debt securities— 218 — 218 
Equity securities48 — — 48 
Short positions(d)
130 221 — 351 
Total liabilities$168 2,089 128 2,385 
(a)Excludes FHLB, FRB and DTCC restricted stock holdings totaling $167, $505 and $2, respectively, at December 31, 2025.
(b)Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment.
(c)Included in other assets in the Condensed Consolidated Balance Sheets.
(d)Included in other liabilities in the Condensed Consolidated Balance Sheets.

For further information on the valuation methodologies used for significant instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, refer to Note 28 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2025.
The following tables are a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):
For the three months ended March 31, 2026 ($ in millions)
Residential
Mortgage
Loans		Servicing
Rights
Interest Rate
Derivatives,
Net(a)
Equity
Derivatives		Total
Fair Value
Balance, beginning of period$106 1,598 1 (124)1,581 
Total (losses) gains (realized/unrealized):(b)(c)
 Included in earnings(1)(38)16 8 (15)
Purchases/originations/acquisitions— 23 (6)(5)12 
Settlements(2)— (14)39 23 
Transfers into Level 3(d)
2 — — — 2 
Balance, end of period$105 1,583 (3)(82)1,603 
The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at March 31, 2026(c)
$(1)(17)7 8 (3)
(a)Net interest rate derivatives include derivative assets and liabilities of $7 and $10, respectively, as of March 31, 2026.
(b)There were no unrealized gains or losses for the period included in other comprehensive income for instruments still held at March 31, 2026.
(c)Included in the following line items in the Condensed Consolidated Statements of Income: mortgage banking net revenue for residential mortgage loans and servicing rights, mortgage banking net revenue and capital markets fees for interest rate derivatives, and other noninterest income for equity derivatives.
(d)Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment.

For the three months ended March 31, 2025 ($ in millions)
Residential
Mortgage
Loans		Servicing
Rights
Interest Rate
Derivatives,
Net(a)
Equity
Derivatives		Total
Fair Value
Balance, beginning of period$108 1,704 (3)(170)1,639 
Total (losses) gains (realized/unrealized):(b)(c)
 Included in earnings2 (50)15 (18)(51)
Purchases/originations— 9 (1)— 8 
Settlements(3)— (11)15 1 
Transfers into Level 3(d)
2 — — — 2 
Balance, end of period$109 1,663 — (173)1,599 
The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at March 31, 2025(c)
$2 (35)6 (18)(45)
(a)Net interest rate derivatives include $5 for both derivative assets and liabilities as of March 31, 2025.
(b)There were no unrealized gains or losses for the period included in other comprehensive income for instruments still held at March 31, 2025.
(c)Included in the following line items in the Condensed Consolidated Statements of Income: mortgage banking net revenue for residential mortgage loans and servicing rights, mortgage banking net revenue and capital markets fees for interest rate derivatives, and other noninterest income for equity derivatives.
(d)Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment.
The following tables present information as of March 31, 2026 and 2025 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured at fair value on a recurring basis:
As of March 31, 2026 ($ in millions)
Financial InstrumentFair ValueValuation
Technique		Significant
Unobservable Inputs		Range of Inputs
Weighted-Average
Residential mortgage loans$105 Loss rate modelInterest rate risk factor(52.0)-7.2%(10.1)%
(a)
Credit risk factor— -0.7%0.1 %
(a)
Servicing rights1,583 DCFPrepayment speed— -90.3%
(Fixed)
6.8 %
(b)
(Adjustable)
18.7 %
(b)
OAS (bps)335 -1,827
(Fixed)
431
(b)
(Adjustable)
711
(b)
IRLCs, net6 DCFLoan closing rates0.8 -98.8%84.9 %
(c)
Swap associated with the sale of Visa, Inc. Class B Shares(82)DCFTiming of the resolution
   of the Covered Litigation		Q1 2028-Q2 2029Q3 2028
(d)
(a)Unobservable inputs were weighted by the relative carrying value of the instruments.
(b)Unobservable inputs were weighted by the relative unpaid principal balance of the instruments.
(c)Unobservable inputs were weighted by the relative notional amount of the instruments.
(d)Unobservable inputs were weighted by the probability of the final funding date of the instruments.

As of March 31, 2025 ($ in millions)
Financial InstrumentFair ValueValuation
Technique		Significant
Unobservable Inputs		Range of InputsWeighted-Average
Residential mortgage loans$109 Loss rate modelInterest rate risk factor(51.9)-5.7 %(11.5)%
(a)
Credit risk factor— -0.7 %0.1 %
(a)
Servicing rights1,663 DCFPrepayment speed— -100.0 %(Fixed)6.3 %
(b)
(Adjustable)16.0 %
(b)
OAS (bps)335-1,821(Fixed)418
(b)
(Adjustable)725
(b)
IRLCs, net5 DCFLoan closing rates20.5 -96.0 %79.7 %
(c)
Swap associated with the sale of Visa, Inc. Class B Shares(173)DCFTiming of the resolution
   of the Covered Litigation		Q2 2027-Q1 2028Q4 2027
(d)
(a)Unobservable inputs were weighted by the relative carrying value of the instruments.
(b)Unobservable inputs were weighted by the relative unpaid principal balance of the instruments.
(c)Unobservable inputs were weighted by the relative notional amount of the instruments.
(d)Unobservable inputs were weighted by the probability of the final funding date of the instruments.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Certain assets and liabilities are measured at fair value on a nonrecurring basis. These assets and liabilities are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment.

The following tables provide the fair value hierarchy and carrying amount of all assets that were held as of March 31, 2026 and 2025, and for which a nonrecurring fair value adjustment was recorded during the three months ended March 31, 2026 and 2025, and the related gains and losses from fair value adjustments on assets sold during the period as well as assets still held as of the end of the period.
Fair Value Measurements UsingTotal Losses
As of March 31, 2026 ($ in millions)Level 1Level 2Level 3Total
For the three months ended March 31, 2026
Commercial loans and leases$— — 109 109 (17)
Consumer and residential mortgage loans— — 166 166 (3)
Bank premises and equipment— — 26 26 (23)
Total$— — 301 301 (43)
Fair Value Measurements UsingTotal (Losses) Gains
As of March 31, 2025 ($ in millions)Level 1Level 2Level 3Total
For the three months ended
 March 31, 2025
Commercial loans and leases$— — 261 261 (126)
Consumer and residential mortgage loans— — 145 145 (4)
OREO— — 4 4 1 
Private equity investments— 13 — 13 4 
Total$— 13 410 423 (125)

The following tables present information as of March 31, 2026 and 2025 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured at fair value on a nonrecurring basis:
As of March 31, 2026 ($ in millions)
Financial InstrumentFair ValueValuation TechniqueSignificant Unobservable InputsRanges of
Inputs		Weighted-Average
Commercial loans and leases$109 Appraised valueCollateral valueNMNM
Consumer and residential mortgage loans166 Appraised valueCollateral valueNMNM
Bank premises and equipment26 Appraised valueAppraised valueNMNM

As of March 31, 2025 ($ in millions)
Financial InstrumentFair ValueValuation TechniqueSignificant Unobservable InputsRanges of
Inputs		Weighted-Average
Commercial loans and leases$261 Appraised valueCollateral valueNMNM
Consumer and residential mortgage loans145 Appraised valueCollateral valueNMNM
OREO4 Appraised valueAppraised valueNMNM

For further information on the valuation methodologies used for certain assets measured at fair value on a nonrecurring basis, refer to Note 28 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2025.

Private equity investments
The Bancorp accounts for its private equity investments using the measurement alternative to fair value, except for those accounted for under the equity method of accounting. Under the measurement alternative, the Bancorp carries each investment at its cost basis minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. The Bancorp did not recognize gains and recognized gains of $4 million during the three months ended March 31, 2026 and 2025, respectively, resulting from observable price changes. The carrying value of the Bancorp’s private equity investments still held as of March 31, 2026 includes a cumulative $23 million of positive adjustments as a result of observable price changes since January 1, 2018. Because these adjustments are based on observable transactions in inactive markets, they are classified in Level 2 of the fair value hierarchy.

The Bancorp did not recognize impairment charges on its private equity investments during both the three months ended March 31, 2026 and 2025. The carrying value of the Bancorp’s private equity investments still held as of March 31, 2026 includes a cumulative $15 million of impairment charges recognized since adoption of the measurement alternative to fair value on January 1, 2018.

Fair Value Option
The Bancorp elected to measure certain residential mortgage loans held for sale under the fair value option as allowed under U.S. GAAP. Electing to measure residential mortgage loans held for sale at fair value reduces certain timing differences and better matches changes in the value of these assets with changes in the value of derivatives used as economic hedges for these assets. Management’s intent to sell residential mortgage loans classified as held for sale may change over time due to such factors as changes in the overall liquidity in markets or changes in characteristics specific to certain loans held for sale. Consequently, these loans may be reclassified to loans held for investment and maintained in the Bancorp’s loan portfolio. In such cases, the loans will continue to be measured at fair value.

Fair value changes recognized in earnings for residential mortgage loans held at March 31, 2026 and 2025 for which the fair value option was elected included losses of $23 million and $2 million, respectively. These changes are reported in mortgage banking net revenue in the Condensed Consolidated Statements of Income.

Valuation adjustments related to instrument-specific credit risk for residential mortgage loans measured at fair value negatively impacted the fair value of those loans by an immaterial amount at both March 31, 2026 and December 31, 2025. Interest on loans measured at fair value is
accrued as it is earned using the effective interest method and is reported as interest income in the Condensed Consolidated Statements of Income.

The following table summarizes the fair value and the unpaid principal balance for residential mortgage loans measured at fair value as of:
March 31, 2026 ($ in millions)Aggregate
Fair Value		Aggregate Unpaid
Principal Balance
Residential mortgage loans measured at fair value$819 822 
Past due loans of 30-89 days1 1 
Past due loans of 90 days or more1 1 
Nonaccrual loans4 4 
December 31, 2025
Residential mortgage loans measured at fair value$764 758 
Past due loans of 30-89 days2 2 
Nonaccrual loans4 4 

Fair Value of Certain Financial Instruments
The following tables summarize the carrying amounts and estimated fair values for certain financial instruments, excluding financial instruments measured at fair value on a recurring basis:
Net Carrying
Amount		Fair Value Measurements UsingTotal
Fair Value
As of March 31, 2026 ($ in millions)Level 1Level 2Level 3
Financial assets:
Cash and due from banks
$4,084 4,084 — — 4,084 
Other short-term investments17,456 17,456 — — 17,456 
Other securities798 — 798 — 798 
Held-to-maturity securities16,389 2,157 14,182 2 16,341 
Loans and leases held for sale651 — — 651 651 
Portfolio loans and leases:
Commercial loans and leases121,039 — — 122,758 122,758 
Consumer and residential mortgage loans52,184 — — 51,892 51,892 
Total portfolio loans and leases, net$173,223 — — 174,650 174,650 
Financial liabilities:
Deposits$233,621 — 233,691 — 233,691 
Short-term borrowings1,289 158 1,131 — 1,289 
Long-term debt18,763 11,694 7,315 — 19,009 

Net Carrying
Amount		Fair Value Measurements UsingTotal
Fair Value
As of December 31, 2025 ($ in millions)Level 1Level 2Level 3
Financial assets:
Cash and due from banks$3,499 3,499 — — 3,499 
Other short-term investments18,876 18,876 — — 18,876 
Other securities674 — 674 — 674 
Held-to-maturity securities11,368 2,457 8,945 2 11,404 
Loans and leases held for sale75 — — 75 75 
Portfolio loans and leases:
Commercial loans and leases72,376 — — 73,628 73,628 
Consumer and residential mortgage loans47,916 — — 47,724 47,724 
Total portfolio loans and leases, net$120,292 — — 121,352 121,352 
Financial liabilities:
Deposits$171,819 — 171,899 — 171,899 
Short-term borrowings926 226 700 — 926 
Long-term debt13,579 5,067 8,938 — 14,005