v3.26.1
Fair value measurements (Tables)
3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis
The following tables present assets and liabilities at March 31, 2026 and December 31, 2025 measured at fair value on a recurring basis.
(Dollars in millions)Fair Value MeasurementsLevel 1Level 2Level 3
March 31, 2026    
Trading account$92 $12 $80 $— 
Investment securities available for sale:   
U.S. Treasury3,240 — 3,240 — 
Mortgage-backed securities:    
Government issued or guaranteed:   
Commercial4,782 — 4,782 — 
Residential17,205 — 17,205 — 
Other— — 
Total investment securities available for sale25,228 — 25,228 — 
Equity securities281 281 — — 
Real estate loans held for sale686 — 686 — 
Residential mortgage loan servicing rights542 — — 542 
Other assets217 — 215 
Total assets$27,046 $293 $26,209 $544 
Other liabilities$425 $— $425 $— 
Total liabilities$425 $— $425 $— 
December 31, 2025    
Trading account$97 $12 $85 $— 
Investment securities available for sale:    
U.S. Treasury6,343 — 6,343 — 
Mortgage-backed securities:    
Government issued or guaranteed:    
Commercial4,816 — 4,816 — 
Residential12,042 — 12,042 — 
Other — — 
Total investment securities available for sale23,202 — 23,202 — 
Equity securities281 281 — — 
Real estate loans held for sale925 — 925 — 
Other assets245 — 242 
Total assets$24,750 $293 $24,454 $
Other liabilities$454 $— $454 $— 
Total liabilities$454 $— $454 $— 
Schedule of Servicing Assets at Fair Value
The changes in fair value of residential mortgage loans servicing right assets for the three months ended March 31, 2026 are presented in the following table.
(Dollars in millions)Residential Mortgage Loan Servicing Rights
(Level 3)
Balance at December 31, 2025 — at amortized cost$287 
January 1, 2026 - fair value accounting election263 
Additions
Changes in fair value included in Mortgage banking revenues (a)(16)
Balance at March 31, 2026 — at fair value$542 
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(a)Includes a $17 million reduction in fair value attributable to the realization of expected net servicing cash flows over time.
Fair Value Measurement Inputs and Valuation Techniques The key economic assumptions used to determine the fair value of residential capitalized servicing rights at March 31, 2026 and the sensitivity of such value to changes in those assumptions are summarized in the table that follows. Those calculated sensitivities are hypothetical and actual changes in the fair value of capitalized servicing rights may differ significantly from the amounts presented herein. The effect of a variation in a particular assumption on the fair value of the servicing rights is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another which may magnify or counteract the sensitivities. The changes in assumptions are presumed to be instantaneous.
(Dollars in millions)
Weighted-average prepayment speeds (range 6% - 17%)
7.44%
Impact on fair value of 10% adverse change$(16)
Impact on fair value of 20% adverse change(30)
Weighted-average OAS (range 5% - 20%)
7.22%
Impact on fair value of 10% adverse change$(15)
Impact on fair value of 20% adverse change(29)
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis The following table summarizes loans subject to such nonrecurring fair value measurements at March 31, 2026 and 2025.
March 31,
(Dollars in millions)20262025
Level 1$— $— 
Level 274 128 
Level 3240 396 
$314 $524 
Changes in fair value recognized for the quarter ended$(38)$(35)
Carrying Amounts and Estimated Fair Value for Financial Instrument Assets (Liabilities)
The carrying amounts and estimated fair value for certain financial instruments that are not recorded at fair value in the Company's Consolidated Balance Sheet are presented in the following table.
(Dollars in millions)
Carrying
Amount
Estimated
Fair Value
Level 1
Level 2
Level 3
March 31, 2026
Financial assets:
Cash and due from banks$1,903 $1,903 $1,732 $171 $— 
Interest-bearing deposits at banks14,445 14,445 — 14,445 — 
Investment securities held to maturity12,119 11,355 — 11,314 41 
Loans, net137,778 137,229 — 4,786 132,443 
Financial liabilities:
Time deposits (a)13,082 13,051 — 13,051 — 
Short-term borrowings7,851 7,851 — 7,851 — 
Long-term borrowings11,175 11,327 — 11,327 — 
December 31, 2025
Financial assets:
Cash and due from banks1,701 1,701 1,588 113 — 
Interest-bearing deposits at banks17,068 17,068 — 17,068 — 
Investment securities held to maturity12,430 11,715 — 11,671 44 
Loans, net136,586 136,269 — 7,427 128,842 
Financial liabilities:
Time deposits (a)13,227 13,208 — 13,208 — 
Short-term borrowings2,149 2,149 — 2,149 — 
Long-term borrowings10,911 11,179 — 11,179 — 
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(a)Includes $2.7 billion and $2.8 billion of time deposits with balances greater than $250,000 at March 31, 2026 and December 31, 2025, respectively.