Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2026

Table 11.1 presents the balances of assets and liabilities recognized at fair value on a recurring basis.

Table 11.1: Fair Value on a Recurring Basis


	June 30, 2026						December 31, 2025
(in millions)	Level 1		Level 2	Level 3	Total		Level 1	Level 2	Level 3	Total
Trading assets:
Debt securities:
Securities of U.S. Treasury and federal agencies	$	63,428	4,929	8	68,365		51,376	3,421	—	54,797
Collateralized loan obligations	—		904	85	989		—	859	77	936
Corporate debt securities	—		17,078	17	17,095		—	19,349	15	19,364
Federal agency mortgage-backed securities	—		67,804	—	67,804		—	69,836	—	69,836
Non-agency mortgage-backed securities	—		1,919	1	1,920		—	1,692	1	1,693
Other debt securities	—		6,276	3	6,279		—	7,236	—	7,236
Total trading debt securities	63,428		98,910	114	162,452		51,376	102,393	93	153,862
Equity securities (1)	33,926		4,029	4	37,959		32,322	5,948	4	38,274
Physical commodities inventory	5,379		7,599	—	12,978		3,430	5,677	—	9,107
Trading loans	—		4,821	210	5,031		—	4,813	69	4,882
Derivative assets (gross):
Interest rate contracts	17		19,958	200	20,175		58	21,985	300	22,343
Commodity contracts	272		6,840	131	7,243		38	3,096	113	3,247
Equity contracts	—		27,694	500	28,194		—	20,636	152	20,788
Foreign exchange contracts	—		57,356	7	57,363		—	38,069	2	38,071
Credit contracts	—		129	6	135		—	51	30	81
Total derivative assets (gross)	289		111,977	844	113,110		96	83,837	597	84,530
Total trading assets prior to derivative netting	$	103,022	227,336	1,172	331,530		87,224	202,668	763	290,655
Derivative netting (2)					(88,362)					(62,720)
Total trading assets after derivative netting					$	243,168				227,935
Available-for-sale debt securities:
Securities of U.S. Treasury and federal agencies	$	81,122	—	—	81,122		51,809	—	—	51,809

Securities of U.S. states and political subdivisions	—		10,463	12	10,475		—	10,383	14	10,397
Federal agency mortgage-backed securities	—		146,572	—	146,572		—	140,080	—	140,080
Non-agency mortgage-backed securities	—		1,800	2	1,802		—	2,124	2	2,126
Collateralized loan obligations	—		9,806	—	9,806		—	7,904	—	7,904
Other debt securities	—		333	216	549		—	1,040	217	1,257
Total available-for-sale debt securities	81,122		168,974	230	250,326		51,809	161,531	233	213,573
Loans held for sale (3)	—		856	57	913		—	721	107	828
Mortgage servicing rights (residential) (3)	—		—	5,343	5,343		—	—	5,696	5,696
Equity securities (1)	2,302		20	72	2,394		1,941	—	67	2,008
Other assets	345		—	181	526		311	—	161	472
Total assets measured at fair value on a recurring basis	$	186,791	397,186	7,055	591,032		141,285	364,920	7,027	513,232
Trading liabilities:
Securities sold, not yet purchased	$	(33,433)	(7,977)	—	(41,410)		(24,581)	(7,261)	(2)	(31,844)
Derivative liabilities gross:
Interest rate contracts	(7)		(21,254)	(544)	(21,805)		(65)	(22,268)	(442)	(22,775)
Commodity contracts	(275)		(3,940)	(104)	(4,319)		(79)	(4,265)	(61)	(4,405)
Equity contracts	—		(28,431)	(1,436)	(29,867)		—	(21,438)	(1,276)	(22,714)
Foreign exchange contracts	—		(55,997)	(34)	(56,031)		—	(36,975)	(2)	(36,977)
Credit contracts	—		(86)	(24)	(110)		—	(57)	(28)	(85)
Total derivative liabilities (gross)	(282)		(109,708)	(2,142)	(112,132)		(144)	(85,003)	(1,809)	(86,956)






Total trading liabilities prior to derivative netting	(33,715)		(117,685)	(2,142)	(153,542)		(24,725)	(92,264)	(1,811)	(118,800)
Derivative netting (2)					96,911					73,332
Total trading liabilities after derivative netting					$	(56,631)				(45,468)
Long-term debt	—		(12,435)	(206)	(12,641)		—	(7,082)	—	(7,082)
Other liabilities	—		(345)	(42)	(387)		—	(311)	(46)	(357)
Total liabilities measured at fair value on a recurring basis	$	(33,715)	(130,465)	(2,390)	(166,570)		(24,725)	(99,657)	(1,857)	(126,239)

(1)Trading equity securities includes $900 million of securities acquired in second quarter 2026 subject to a contractual lock-up period restricting the sale of the securities until third quarter 2026. See Note 4 (Equity Securities) for information on contractual lock-up periods related to non-trading equity securities.

(2)Represents balance sheet netting of derivative asset and liability balances, related cash collateral, and portfolio level valuation adjustments. See Note 10 (Derivatives) for additional information.

(3)Loans held for sale and mortgage servicing rights are included in other assets on our consolidated balance sheet.

Changes in Level 3 Fair Value Assets and Liabilities on a Recurring Basis

Table 11.2 presents the changes in Level 3 assets and liabilities recognized at fair value on a recurring basis.

Table 11.2: Changes in Level 3 Fair Value Assets and Liabilities on a Recurring Basis


										Net unrealized gains (losses) related to assets and liabilities held at period end (2)(6)
(in millions)	Balance, beginning of period		Net gains/(losses) (1)(2)	Purchases (3)	Sales	Settlements	Transfers into Level 3 (4)	Transfers out of Level 3 (5)	Balance, end of period
Quarter ended June 30, 2026
Trading assets (7):
Debt instruments (8)	$	215	(8)	72	(58)	(6)	115	(6)	324	(10)
Net derivative assets and liabilities:
Interest rate contracts	(271)		(114)	—	—	25	—	16	(344)	(113)
Equity contracts	(833)		(419)	6	(8)	225	(74)	167	(936)	(262)
Other derivative contracts	9		(34)	3	(1)	21	—	(16)	(18)	(33)
Total derivative contracts	(1,095)		(567)	9	(9)	271	(74)	167	(1,298)	(408)
Available-for-sale debt securities	225		6	1	—	(2)	—	—	230	6
Mortgage servicing rights (residential) (9)	5,608		(60)	22	(227)	—	—	—	5,343	102
Long-term debt	—		4	(210)	—	—	—	—	(206)	4
Other (7)	150		76	8	(32)	(2)	5	(9)	196	73
Quarter ended June 30, 2025
Trading assets (7):
Debt instruments (8)	$	153	(11)	10	(20)	(5)	13	(7)	133	(8)
Net derivative assets and liabilities:
Interest rate contracts	(2,330)		230	—	—	24	—	1,896	(180)	178
Equity contracts	(1,124)		(121)	—	—	139	(57)	118	(1,045)	(77)
Other derivative contracts	(96)		(28)	6	(1)	(41)	—	136	(24)	18
Total derivative contracts	(3,550)		81	6	(1)	122	(57)	2,150	(1,249)	119
Available-for-sale debt securities	211		(2)	—	—	—	—	—	209	(1)
Mortgage servicing rights (residential) (9)	6,536		(108)	26	(37)	—	—	—	6,417	88
Long-term debt	—		—	—	—	—	—	—	—	—
Other (7)	163		33	11	—	(4)	5	(10)	198	33
Six months ended June 30, 2026
Trading assets (7):
Debt instruments (8)	$	162	(24)	299	(287)	(12)	199	(13)	324	(39)
Net derivative assets and liabilities:
Interest rate contracts	(142)		(277)	—	—	30	—	45	(344)	(242)
Equity contracts	(1,124)		(237)	6	(8)	432	(309)	304	(936)	20
Other derivative contracts	54		(49)	5	(5)	12	(2)	(33)	(18)	(18)
Total derivative contracts	(1,212)		(563)	11	(13)	474	(311)	316	(1,298)	(240)
Available-for-sale debt securities	233		(3)	6	—	(6)	—	—	230	(3)
Mortgage servicing rights (residential) (9)	5,696		(166)	39	(226)	—	—	—	5,343	158
Long-term debt	—		4	(210)	—	—	—	—	(206)	4
Other (7)	222		21	17	(62)	(5)	14	(11)	196	20
Six months ended June 30, 2025
Trading assets (7):
Debt instruments (8)	$	144	(18)	23	(27)	(15)	41	(15)	133	(16)
Net derivative assets and liabilities:
Interest rate contracts	(3,603)		1,098	—	—	429	—	1,896	(180)	293
Equity contracts	(1,167)		(67)	—	—	259	(197)	127	(1,045)	1
Other derivative contracts	(33)		55	8	(1)	(189)	—	136	(24)	24
Total derivative contracts	(4,803)		1,086	8	(1)	499	(197)	2,159	(1,249)	318
Available-for-sale debt securities	216		(1)	3	—	(9)	—	—	209	(1)
Mortgage servicing rights (residential) (9)	6,844		(365)	51	(113)	—	—	—	6,417	20
Long-term debt	—		—	—	—	—	—	—	—	—
Other (7)	278		(43)	16	—	(7)	10	(56)	198	(43)

(1)All amounts represent net gains (losses) included in net income except for AFS debt securities and other assets and liabilities which also included net gains (losses) in other comprehensive income (OCI). Net gains (losses) included in OCI for AFS debt securities were $7 million and $(2) million for the second quarter and first half of 2026, respectively, and $(1) million for both the second quarter and first half of 2025. Net gains (losses) included in OCI for other assets and liabilities were $(5) million and $2 million for the second quarter and first half of 2026, respectively, and $(10) million and $(9) million for the second quarter and first half of 2025, respectively.

(2)On our consolidated statement of income, gains and losses from the following instruments are reported as indicated: trading debt instruments and available-for-sale debt securities in net gains from trading and securities; derivative contracts in mortgage banking income, net gains from trading and securities, and other noninterest income; mortgage servicing rights in mortgage banking income; long-term debt in interest expense and net gains from trading and securities; and other fair value instruments in mortgage banking income and other noninterest income.

(3)Includes originations of mortgage servicing rights and loans held for sale and issuances of long-term debt.

(4)All assets and liabilities transferred into Level 3 were previously classified as Level 2.

(5)All assets and liabilities transferred out of Level 3 are classified as Level 2.

(6)All amounts represent net unrealized gains (losses) related to assets and liabilities held at period end included in net income except for AFS debt securities and other assets and liabilities which also included net unrealized gains (losses) related to assets and liabilities held at period end in OCI. Net unrealized gains (losses) included in OCI for AFS debt securities were $7 million and $(2) million for the second quarter and first half of 2026, respectively, and $(1) million for both the second quarter and first half of 2025. Net unrealized gains (losses) included in OCI for other assets and liabilities were $(5) million and $2 million for the second quarter and first half of 2026, respectively, and $(10) million and $(9) million for the second quarter and first half of 2025, respectively.

(7)In fourth quarter 2025, we changed the presentation of certain items on our consolidated balance sheet, including trading assets and liabilities and short-term borrowings, with corresponding changes to our consolidated statement of income. Prior period balances have been revised to conform with the current period presentation. For additional information, see Note 1 (Summary of Significant Accounting Policies).

(8)Includes trading debt securities and trading loans.

(9)For additional information on the changes in mortgage servicing rights, see Note 6 (Mortgage Banking Activities).

Valuation Techniques – Recurring Basis

Table 11.3 provides quantitative information about the valuation techniques and significant unobservable inputs used in the valuation of our Level 3 assets and liabilities measured at fair value on a recurring basis.

Weighted averages of inputs are calculated using outstanding unpaid principal balances of loans serviced for residential MSRs and notional amounts for derivative instruments.

Table 11.3: Valuation Techniques – Recurring Basis


($ in millions, except cost to service amounts)	Fair Value Level 3		Valuation Technique	Significant Unobservable Input	Range of Inputs					Weighted Average
June 30, 2026










Mortgage servicing rights (residential)	$	5,343	Discounted cash flow	Cost to service per loan (1)	$	62	-	435		89
				Discount rate	9.2		-	11.9	%	9.4
				Prepayment rate (2)	5.5		-	23.5		7.6
Net derivative assets and (liabilities):
Interest rate contracts	(344)		Discounted cash flow	Discount rate	2.3		-	7.4		3.9





Equity contracts	(355)		Discounted cash flow	Conversion factor	(0.3)		-	0.0		(0.2)
				Weighted average life	0.5		-	3.5	yrs	1.2
	(581)		Option model	Correlation factor	(66.5)		-	98.0	%	57.9
				Volatility factor	10.7		-	97.6		51.7


December 31, 2025









Mortgage servicing rights (residential)	$	5,696	Discounted cash flow	Cost to service per loan (1)	$	61	-	446		96
				Discount rate	8.8		-	12.5	%	9.1
				Prepayment rate (2)	5.7		-	23.0		8.0
Net derivative assets and (liabilities):
Interest rate contracts	(139)		Discounted cash flow	Discount rate	2.5		-	3.5		3.4
	(3)		Discounted cash flow	Default rate	0.4		-	12.0		2.4
				Loss severity	50.0		-	50.0		50.0



Equity contracts	(579)		Discounted cash flow	Conversion factor	(0.3)		-	0.0		(0.2)
				Weighted average life	1.0		-	4.0	yrs	1.7
	(545)		Option model	Correlation factor	(20.0)		-	98.5	%	77.1
				Volatility factor	8.0		-	105.0		42.7

(1)The high end of the range of inputs is for servicing modified loans. For non-modified loans, the range is $62 - $120 at June 30, 2026, and $61 - $112 at December 31, 2025.

(2)Includes a blend of prepayment speeds and expected defaults. Prepayment speeds are influenced by mortgage interest rates as well as our estimation of drivers of borrower behavior.

Fair Value on a Nonrecurring Basis

Table 11.4 provides the fair value hierarchy and fair value at the date of the nonrecurring fair value adjustment for all assets that

were still held as of June 30, 2026, and December 31, 2025, and for which a nonrecurring fair value adjustment was recognized during the six months ended June 30, 2026, and the year ended December 31, 2025.

Table 11.4: Fair Value on a Nonrecurring Basis


	June 30, 2026				December 31, 2025
(in millions)	Level 2		Level 3	Total	Level 2	Level 3	Total
Loans held for sale (1)	$	599	9	608	1,846	240	2,086
Loans:
Commercial	417		—	417	1,161	—	1,161
Consumer	67		—	67	96	—	96
Total loans	484		—	484	1,257	—	1,257

Equity securities	652		2,780	3,432	1,001	1,791	2,792
Other assets	46		1	47	89	9	98
Total assets at fair value on a nonrecurring basis	$	1,781	2,790	4,571	4,193	2,040	6,233

(1)Consists of commercial mortgages and residential mortgage – first lien loans.

Gains (Losses) on Assets with Nonrecurring Fair Value Adjustments

Table 11.5 presents the gains (losses) on all assets held at the end of the reporting periods presented for which a nonrecurring fair value adjustment was recognized in earnings during the respective periods.

Table 11.5: Gains (Losses) on Assets with Nonrecurring Fair Value Adjustments


	Six months ended June 30,
(in millions)	2026		2025
Loans held for sale	$	1	8
Loans:
Commercial	(197)		(273)
Consumer	(196)		(213)
Total loans	(393)		(486)

Equity securities (1)	344		(249)

Other assets (2)(3)	(15)		(34)
Total	$	(63)	(761)

(1)Includes impairment of equity securities and observable price changes related to equity securities accounted for under the measurement alternative.

(2)Includes impairment of operating lease ROU assets and valuation losses on foreclosed real estate and other collateral owned.

(3)In fourth quarter 2025, we changed the presentation of certain items on our consolidated balance sheet, including trading assets and liabilities, with corresponding changes to our consolidated statement of income. Prior period balances have been revised to conform with the current period presentation. For additional information, see Note 1 (Summary of Significant Accounting Policies).

Valuation Techniques – Nonrecurring Basis

Table 11.6 provides quantitative information about the valuation techniques and significant unobservable inputs used in the valuation of our Level 3 assets that are measured at fair value on

a nonrecurring basis. Weighted averages of inputs for equity securities are calculated using carrying value prior to the nonrecurring fair value measurement.

Table 11.6: Valuation Techniques – Nonrecurring Basis


($ in millions)	Fair Value Level 3		Valuation Technique (1)	Significant Unobservable Input (1)	Range of Inputs Positive (Negative)				Weighted Average
June 30, 2026










Equity securities	$	1,566	Market comparable pricing	Comparability adjustment	(100.0)	-	(15.0)	%	(59.9)




	1,214		Market comparable pricing	Multiples	1.1x	-	28.0x		7.6x


December 31, 2025








Equity securities	393		Market comparable pricing	Comparability adjustment	(100.0)	-	(4.9)	%	(49.1)

	1,398		Market comparable pricing	Multiples	1.1x	-	44.1x		12.3x

(1)See Note 14 (Fair Value Measurements) in our 2025 Form 10-K for additional information on the valuation technique(s) and significant unobservable inputs used in the valuation of Level 3 assets.

Fair Value Option

Table 11.7 reflects differences between the fair value carrying amount of the assets and liabilities for which we have elected the fair value option and the contractual aggregate unpaid principal amount at maturity.

Table 11.7: Fair Value Option


	June 30, 2026				December 31, 2025
(in millions)	Fair value carrying amount		Aggregate unpaid principal	Fair value carrying amount less aggregate unpaid principal	Fair value carrying amount	Aggregate unpaid principal	Fair value carrying amount less aggregate unpaid principal
Trading assets (1)	$	5,031	5,516	(485)	4,882	5,180	(298)
Other assets (1)	913		922	(9)	828	846	(18)

Other liabilities	(345)		—	(345)	(311)	—	(311)
Long-term debt (2)	(12,641)		(13,444)	803	(7,082)	(7,647)	565

(1)Trading assets consists of trading loans and other assets consists of loans held for sale accounted for under the fair value option. Nonaccrual loans and loans 90 days or more past due and still accruing were insignificant at June 30, 2026, and December 31, 2025.

(2)Includes zero coupon notes for which the aggregate unpaid principal amount reflects the contractual principal due at maturity.

Gains (Losses) on Changes in Fair Value Included in Earnings

Table 11.8 reflects amounts included in earnings related to initial measurement and subsequent changes in fair value, by income statement line item, for assets and liabilities for which the fair

value option was elected. Amounts recognized in net interest income are excluded from the table below.

Table 11.8: Gains (Losses) on Changes in Fair Value Included in Earnings



	2026				2025
(in millions)	Mortgage banking noninterest income		Net gains from trading and securities (1)	Other noninterest income	Mortgage banking noninterest income	Net gains from trading and securities	Other noninterest income
Quarter ended June 30,
Trading assets (1)	$	—	18	3	—	12	—
Other assets (1)	11		—	—	20	—	—

Other liabilities	—		—	(28)	—	—	(22)
Long-term debt	—		130	—	—	3	—
Six months ended June 30,
Trading assets (1)	$	—	(35)	3	—	9	—
Other assets (1)	11		—	—	41	—	—

Other liabilities	—		—	(34)	—	—	(19)
Long-term debt	—		229	—	—	(23)	—

(1)In fourth quarter 2025, we changed the presentation of certain items on our consolidated balance sheet, including trading assets and liabilities, with corresponding changes to our consolidated statement of income. Prior period balances have been revised to conform with the current period presentation. For additional information, see Note 1 (Summary of Significant Accounting Policies).

Fair Value Estimates for Financial Instruments

Table 11.9 presents a summary of fair value estimates for financial instruments that are not carried at fair value on a recurring basis. Some financial instruments are excluded from the scope of this table, such as certain insurance contracts, certain nonmarketable equity securities, and leases. This table also excludes assets and liabilities that are not financial instruments such as the value of the long-term relationships with our deposit, credit card and trust customers, MSRs, premises and equipment, goodwill and deferred taxes.

Loan commitments, standby letters of credit and commercial and similar letters of credit are not included in Table 11.9. A reasonable estimate of the fair value of these instruments is the carrying value of deferred fees plus the allowance for unfunded credit commitments, which totaled $606 million and $639 million at June 30, 2026, and December 31, 2025, respectively.

The total of the fair value calculations presented does not represent, and should not be construed to represent, the underlying fair value of the Company.

Table 11.9: Fair Value Estimates for Financial Instruments


			Estimated fair value
(in millions)	Carrying amount		Level 1	Level 2	Level 3	Total
June 30, 2026
Financial assets
Cash and due from banks (1)	$	42,161	42,161	—	—	42,161
Interest-earning deposits with banks (1)	161,214		160,878	336	—	161,214
Federal funds sold and securities borrowed or purchased under resale agreements (1)	205,345		—	205,345	—	205,345
Held-to-maturity debt securities	198,573		2,043	160,842	3,280	166,165
Loans held for sale (2)	1,890		—	1,741	158	1,899
Loans, net (2)	1,001,739		—	720	974,592	975,312
Equity securities (cost method)	4,621		—	—	4,726	4,726
Total financial assets	$	1,615,543	205,082	368,984	982,756	1,556,822
Financial liabilities
Deposits (3)	$	197,259	—	110,055	87,073	197,128
Federal funds purchased and securities loaned or sold under repurchase agreements (1)	251,804		—	251,804	—	251,804
Short-term borrowings	25,132		—	25,171	—	25,171
Long-term debt (4)	169,487		—	173,285	1,277	174,562
Total financial liabilities	$	643,682	—	560,315	88,350	648,665
December 31, 2025
Financial assets
Cash and due from banks (1)	$	39,182	39,182	—	—	39,182
Interest-earning deposits with banks (1)	135,028		134,695	333	—	135,028
Federal funds sold and securities borrowed or purchased under resale agreements (1)	193,929		—	193,929	—	193,929
Held-to-maturity debt securities	208,023		2,051	170,490	3,256	175,797
Loans held for sale	2,618		—	2,418	263	2,681
Loans, net (2)	957,037		—	820	931,108	931,928
Equity securities (cost method)	4,323		—	—	4,415	4,415
Total financial assets	$	1,540,140	175,928	367,990	939,042	1,482,960
Financial liabilities
Deposits (3)	$	166,686	—	75,728	90,379	166,107
Federal funds purchased and securities loaned or sold under repurchase agreements (1)	232,687		—	232,687	—	232,687
Short-term borrowings	18,323		—	18,331	—	18,331
Long-term debt (4)	167,618		—	172,563	1,390	173,953
Total financial liabilities	$	585,314	—	499,309	91,769	591,078

(1)Amounts consist of financial instruments for which carrying value approximates fair value.

(2)Excludes lease financing in loans and loans held for sale, net of allowance for credit losses, of $15.5 billion and $16.4 billion at June 30, 2026, and December 31, 2025, respectively.

(3)Excludes deposit liabilities with no defined or contractual maturity of $1.3 trillion at both June 30, 2026, and December 31, 2025.

(4)Excludes obligations under finance leases of $11 million and $12 million at June 30, 2026, and December 31, 2025, respectively.