Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2026

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

The following tables present these assets and liabilities at March 31, 2026, and December 31, 2025.


	March 31, 2026								December 31, 2025
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Dollars in millions
ASSETS MEASURED ON A RECURRING BASIS



Trading account assets:
U.S. Treasury, agencies and corporations	$	—	$	428	$	—	$	428	$	—	$	674	$	—	$	674
States and political subdivisions	—		37		—		37		—		60		—		60

Other mortgage-backed securities	—		261		—		261		—		316		—		316
Other securities	1		52		—		53		—		6		—		6
Total trading account securities	1		778		—		779		—		1,056		—		1,056
Commercial loans	—		4		—		4		—		5		—		5
Total trading account assets	1		782		—		783		—		1,061		—		1,061
Securities available for sale:
U.S. Treasury, agencies and corporations	—		7,844		—		7,844		—		7,886		—		7,886

Agency residential collateralized mortgage obligations	—		8,249		—		8,249		—		8,565		—		8,565
Agency residential mortgage-backed securities	—		18,933		—		18,933		—		19,195		—		19,195
Agency commercial mortgage-backed securities	—		3,892		—		3,892		—		3,950		—		3,950
Other securities	—		—		—		—		—		—		—		—
Total securities available for sale	—		38,918		—		38,918		—		39,596		—		39,596
Other investments:
Principal investments:

Indirect (measured at NAV) (a)	—		—		—		8		—		—		—		9
Total principal investments	—		—		—		8		—		—		—		9
Equity investments:
Direct	—		—		2		2		—		—		3		3
Direct (measured at NAV) (a)	—		—		—		76		—		—		—		71
Indirect (measured at NAV) (a)	—		—		—		3		—		—		—		3
Total equity investments	—		—		2		81		—		—		3		77
Total other investments	—		—		2		89		—		—		3		86
Loans, net of unearned income (residential)	—		—		11		11		—		—		11		11
Loans held for sale (residential)	—		100		—		100		—		149		—		149
Derivative assets:
Interest rate	—		117		(2)		115		—		135		(3)		132
Foreign exchange	58		32		—		90		39		44		—		83
Commodity	—		406		—		406		—		249		—		249

Other	—		51		1		52		—		7		1		8
Derivative assets	58		606		(1)		663		39		435		(2)		472
Netting adjustments (b)	—		—		—		(295)		—		—		—		(297)
Total derivative assets	58		606		(1)		368		39		435		(2)		175

Total assets on a recurring basis at fair value	$	59	$	40,406	$	12	$	40,269	$	39	$	41,241	$	12	$	41,078
LIABILITIES MEASURED ON A RECURRING BASIS
Bank notes and other short-term borrowings:
Short positions	$	621	$	278	$	—	$	899	$	412	$	409	$	—	$	821
Derivative liabilities:
Interest rate	—		582		—		582		—		577		—		577
Foreign exchange	52		32		—		84		36		44		—		80
Commodity	—		394		—		394		—		237		—		237
Credit	—		1		—		1		—		8		—		8
Other	—		15		1		16		—		25		—		25
Derivative liabilities	52		1,024		1		1,077		36		891		—		927
Netting adjustments (b)	—		—		—		(485)		—		—		—		(274)
Total derivative liabilities	52		1,024		1		592		36		891		—		653

Total liabilities on a recurring basis at fair value	$	673	$	1,302	$	1	$	1,491	$	448	$	1,300	$	—	$	1,474

(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. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet.

(b)Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The net basis takes into account the impact of bilateral collateral and master netting agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position with the related cash collateral. Total derivative assets and liabilities include these netting adjustments.

Schedule of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis

The following table presents our assets measured at fair value on a nonrecurring basis at March 31, 2026, and December 31, 2025:


	March 31, 2026								December 31, 2025
Dollars in millions	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
ASSETS MEASURED ON A NONRECURRING BASIS
Collateral-dependent loans	$	—	$	—	$	116	$	116	$	—	$	—	$	56	$	56


Accrued income and other assets	—		—		12		12		—		—		32		32
Total assets on a nonrecurring basis at fair value	$	—	$	—	$	128	$	128	$	—	$	—	$	88	$	88

Schedule of Quantitative Information about Level 3 Fair Value Measurements

The range and weighted-average of the significant unobservable inputs used to measure the fair value of our material Level 3 recurring and nonrecurring assets at March 31, 2026, and December 31, 2025, along with the valuation techniques used, are shown in the following table:


	Level 3 Asset (Liability)				Valuation Technique	Significant Unobservable Input	Range (Weighted-Average) (a), (b)
Dollars in millions	March 31, 2026		December 31, 2025				March 31, 2026	December 31, 2025
Recurring















Loans, net of unearned income (residential)	$	11	$	11	Market comparable pricing	Comparability factor	71.30 - 95.00% (84.58%)	74.30-99.00% (84.99%)
Derivative instruments:
Interest rate	(2)		(3)		Discounted cash flows	Probability of default	.02 - 100% (4.80%)	.02 - 100% (4.40%)

						Loss given default	0 - 1 (.449)	0 - 1 (.485)







Insignificant level 3 assets, net of liabilities(c)	2		4
Nonrecurring
Collateral-dependent loans	116		56		Fair value of collateral	Credit and liquidity discount	0 - 72.00% (22.00%)	0 - 100.00% (40.00%)


Accrued income and other assets: (d)

OREO and other Level 3 assets	10		8		Appraised value	Appraised value	N/M	N/M

(a)The weighted average of significant unobservable inputs is calculated using a weighting relative to fair value.

(b)For significant unobservable inputs with no range, a single figure is reported to denote the single quantitative factor used.

(c)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 equity investments and certain financial derivative assets and liabilities.

(d)Excludes $2 million pertaining to mortgage servicing assets measured on a nonrecurring basis as of March 31, 2026. Refer to Note 8 (“Mortgage Servicing Assets”) for significant unobservable inputs pertaining to these assets.

Schedule of Fair Value Disclosures of Financial Instruments

The levels in the fair value hierarchy ascribed to our financial instruments and the related carrying amounts at March 31, 2026, and December 31, 2025, are shown in the following tables. Assets and liabilities are further arranged by measurement category.


	March 31, 2026
	Carrying Amount		Fair Value
Dollars in millions			Level 1		Level 2		Level 3		Total
FINANCIAL ASSETS
Cash and short-term investments (a)	$	12,912	$	12,912	$	—	$	—	$	12,912

Held-to-maturity securities (b)	9,116		—		8,742		—		8,742

Other investments (c)	1,113		—		—		1,113		1,113




Loans, net of unearned income (d)	107,730		—		—		104,569		104,569
Loans held for sale (c)	776		—		—		776		776
FINANCIAL LIABILITIES





Time deposits (e)	$	11,155	$	—	$	11,198	$	—	$	11,198
Short-term borrowings (a)	5,284		—		5,284		—		5,284
Long-term debt (e)	10,877		10,025		963		—		10,988
Deposits with no stated maturity (a)	136,660		—		136,660		—		136,660


	December 31, 2025
	Carrying Amount		Fair Value
Dollars in millions			Level 1		Level 2		Level 3		Total
FINANCIAL ASSETS
Cash and short-term investments (a)	$	11,450	$	11,450	$	—	$	—	$	11,450
Held-to-maturity securities (b)	8,622		—		8,313		—		8,313

Other investments (c)	863		—		—		863		863








Loans, net of unearned income (d)	105,103		—		—		101,946		101,946
Loans held for sale (c)	928		—		—		928		928

FINANCIAL LIABILITIES





Time deposits (e)	$	12,680	$	—	$	12,731	$	—	$	12,731
Short-term borrowings (a)	263		—		263		—		263
Long-term debt (e)	9,917		9,318		$	729	—		10,047

Deposits with no stated maturity (a)	136,033		—		136,033		—		136,033

Valuation Methods and Assumptions

(a)Fair value equals or approximates carrying amount. The fair value of deposits with no stated maturity does not take into consideration the value ascribed to core deposit intangibles.

(b)Fair values of held-to-maturity securities are determined by using models that are based on security-specific details, as well as relevant industry and economic factors. The most significant of these inputs are quoted market prices, interest rate spreads on relevant benchmark securities, and certain prepayment assumptions. We review the valuations derived from the models to ensure that they are reasonable and consistent with the values placed on similar securities traded in the secondary markets.

(c)Information pertaining to our methodology for measuring the fair values of these assets and liabilities is included in the sections entitled “Qualitative Disclosures of Valuation Techniques” and “Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis” within our 2025 Form 10-K Note 5 (“Fair Value Measurements”).

(d)The fair value of loans is based on the present value of the expected cash flows. The projected cash flows are based on the contractual terms of the loans, adjusted for prepayments and use of a discount rate based on the relative risk of the cash flows, taking into account the loan type, maturity of the loan, liquidity risk, servicing costs, and a required return on debt and capital. In addition, an incremental liquidity discount is applied to certain loans, using historical sales of loans during periods of similar economic conditions as a benchmark. The fair value of loans includes lease financing receivables at their aggregate carrying amount, which is equivalent to their fair value.

(e)Fair values of time deposits and long-term debt are based on discounted cash flows utilizing relevant market inputs.