Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2026

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 1		Level 2	Level 3	Total 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 securities	662		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 securities	662		1,007	—	1,669
Equity securities	524		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 contracts	10		563	7	580
Foreign exchange contracts	—		553	—	553
Commodity contracts	156		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 contracts	396		1,800	—	2,196
Derivative liabilities(d)	397		3,012	92	3,501
Short positions:
U.S. Treasury and federal agencies securities	188		1	—	189
Asset-backed securities and other debt securities	—		156	—	156
Equity securities	44		—	—	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 1		Level 2	Level 3	Total 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 securities	482		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 securities	482		575	—	1,057
Equity securities	436		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 contracts	1		457	5	463
Foreign exchange contracts	—		659	—	659
Commodity contracts	224		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 contracts	35		703	—	738
Derivative liabilities(d)	38		1,868	128	2,034
Short positions:
U.S. Treasury and federal agencies securities	82		3	—	85
Asset-backed securities and other debt securities	—		218	—	218
Equity securities	48		—	—	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.

Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs

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 earnings	2		(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.

(d)Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment.

Quantitative Information About Significant Unobservable Level 3 Fair Value Measurement Input, Recurring

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 Instrument	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range of Inputs			Weighted-Average
Residential mortgage loans	$	105	Loss rate model	Interest rate risk factor	(52.0)	-	7.2%		(10.1)	%	(a)
				Credit risk factor	—	-	0.7%		0.1	%	(a)
Servicing rights	1,583		DCF	Prepayment speed	—	-	90.3%	(Fixed)	6.8	%	(b)
								(Adjustable)	18.7	%	(b)
				OAS (bps)	335	-	1,827	(Fixed)	431		(b)
								(Adjustable)	711		(b)
IRLCs, net	6		DCF	Loan closing rates	0.8	-	98.8%		84.9	%	(c)
Swap associated with the sale of Visa, Inc. Class B Shares	(82)		DCF	Timing of the resolution of the Covered Litigation	Q1 2028	-	Q2 2029	Q3 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 Instrument	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range of Inputs			Weighted-Average
Residential mortgage loans	$	109	Loss rate model	Interest rate risk factor	(51.9)	-	5.7 %		(11.5)	%	(a)
				Credit risk factor	—	-	0.7 %		0.1	%	(a)
Servicing rights	1,663		DCF	Prepayment speed	—	-	100.0 %	(Fixed)	6.3	%	(b)
								(Adjustable)	16.0	%	(b)
				OAS (bps)	335	-	1,821	(Fixed)	418		(b)
								(Adjustable)	725		(b)
IRLCs, net	5		DCF	Loan closing rates	20.5	-	96.0 %		79.7	%	(c)
Swap associated with the sale of Visa, Inc. Class B Shares	(173)		DCF	Timing of the resolution of the Covered Litigation	Q2 2027	-	Q1 2028	Q4 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

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 Using					Total Losses
As of March 31, 2026 ($ in millions)	Level 1		Level 2	Level 3	Total	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 Using					Total (Losses) Gains
As of March 31, 2025 ($ in millions)	Level 1		Level 2	Level 3	Total	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)

Quantitative Information About Significant Unobservable Level 3 Fair Value Measurement Input, Nonrecurring

As of March 31, 2026 ($ in millions)

Financial Instrument

Fair Value

Valuation Technique

Significant Unobservable Inputs

Ranges of
Inputs

Weighted-Average

Commercial loans and leases

109

Appraised value

Collateral value

Consumer and residential mortgage loans

166

Appraised value

Collateral value

Bank premises and equipment

Appraised value

As of March 31, 2025 ($ in millions)

Financial Instrument

Fair Value

Valuation Technique

Significant Unobservable Inputs

Ranges of
Inputs

Weighted-Average

Commercial loans and leases

261

Appraised value

Collateral value

Consumer and residential mortgage loans

145

Appraised value

Collateral value

OREO

Appraised value

Difference Between the Fair Value and the Unpaid Principal Balance for Loans

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 days	1		1
Past due loans of 90 days or more	1		1
Nonaccrual loans	4		4
December 31, 2025
Residential mortgage loans measured at fair value	$	764	758
Past due loans of 30-89 days	2		2

Nonaccrual loans	4		4

Carrying Amounts and Estimated Fair Values for 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 Using			Total Fair Value
As of March 31, 2026 ($ in millions)			Level 1	Level 2	Level 3
Financial assets:
Cash and due from banks	$	4,084	4,084	—	—	4,084
Other short-term investments	17,456		17,456	—	—	17,456
Other securities	798		—	798	—	798
Held-to-maturity securities	16,389		2,157	14,182	2	16,341
Loans and leases held for sale	651		—	—	651	651
Portfolio loans and leases:
Commercial loans and leases	121,039		—	—	122,758	122,758
Consumer and residential mortgage loans	52,184		—	—	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 borrowings	1,289		158	1,131	—	1,289
Long-term debt	18,763		11,694	7,315	—	19,009


	Net Carrying Amount		Fair Value Measurements Using			Total Fair Value
As of December 31, 2025 ($ in millions)			Level 1	Level 2	Level 3
Financial assets:
Cash and due from banks	$	3,499	3,499	—	—	3,499
Other short-term investments	18,876		18,876	—	—	18,876
Other securities	674		—	674	—	674
Held-to-maturity securities	11,368		2,457	8,945	2	11,404
Loans and leases held for sale	75		—	—	75	75
Portfolio loans and leases:
Commercial loans and leases	72,376		—	—	73,628	73,628
Consumer and residential mortgage loans	47,916		—	—	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 borrowings	926		226	700	—	926
Long-term debt	13,579		5,067	8,938	—	14,005

- 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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