v3.26.1
Derivatives and Hedging Activities (Tables)
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Assets at Fair Value
As of June 30, 2026 and December 31, 2025, the following amounts are reflected on the Consolidated Balance Sheet related to cumulative basis adjustments for outstanding fair value hedges:
June 30, 2026December 31, 2025
Carrying Value of Hedged Assets/(Liabilities) (1)Cumulative Fair Value Hedging Adjustment (2)Carrying Value of Hedged Assets/(Liabilities) (1)Cumulative Fair Value Hedging Adjustment (2)
(in millions)
Loans HFI, net of deferred loan fees and costs (3)$1,798 $(42)$3,811 $— 
Investment securities - AFS3,482 (73)3,006 (65)
Qualifying debt(396)8 (396)2 
(1)Represents the amortized cost basis of the hedged assets and liabilities.
(2)Included in the carrying value of the hedged assets and liabilities.
(3)Included portfolio layer method derivative instruments with $1.5 billion and $3.5 billion designated as the hedged amount (from a closed portfolio of prepayable fixed rate loans with a carrying value of $3.7 billion and $7.2 billion) as of June 30, 2026 and December 31, 2025, respectively. The cumulative basis adjustment included in the carrying value of these hedged items totaled $(30) million and $8 million as of June 30, 2026 and December 31, 2025, respectively.
Derivative Instruments, Gain (Loss) For loans and AFS debt securities, the gain or loss on the hedged item is included in interest income, and for qualifying debt, the gain or loss on the hedged item is included in interest expense, as shown in the table below.
Three Months Ended June 30,
20262025
Income Statement ClassificationGain/(Loss) on SwapsGain/(Loss) on Hedged ItemGain/(Loss) on SwapsGain/(Loss) on Hedged Item
(in millions)
Interest income on loans, including fees$15.0 $(15.1)$(31.6)$31.6 
Interest income on investment securities33.0 (31.9)(38.4)40.2 
Interest expense on qualifying debt(6.9)6.9 — — 
Six Months Ended June 30,
20262025
Income Statement ClassificationGain/(Loss) on SwapsGain/(Loss) on Hedged ItemGain/(Loss) on SwapsGain/(Loss) on Hedged Item
(in millions)
Interest income on loans, including fees$24.9 $(25.1)$(95.4)$95.5 
Interest income on investment securities10.3 (8.3)(38.4)40.2 
Interest expense on qualifying debt(4.6)4.6 — — 
The following table summarizes the net gain (loss) on derivatives included in the non-interest income line items below:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(in millions)
Net gain (loss) on loan origination and sale activities:
Interest rate lock commitments$23.2 $10.8 $0.7 $25.8 
Forward contracts(28.6)(17.5)16.3 (73.0)
Interest rate contracts3.0 2.3 6.7 2.3 
Other contracts5.1 (0.1)2.1 3.4 
Net gain (loss) on derivatives$2.7 $(4.5)$25.8 $(41.5)
Net loan servicing revenue:
Forward contracts$3.4 $(9.3)$(24.4)$(1.9)
Futures contracts4.1 (0.6)24.2 (6.4)
Interest rate contracts(18.3)16.5 (33.6)42.8 
Net (loss) gain on derivatives$(10.8)$6.6 $(33.8)$34.5 
Fair value gain adjustments, net
Interest rate contracts$4.2 $2.0 $7.6 $4.5 
Covered call options5.8 — 6.1 — 
Risk participation agreements0.3 0.1 0.4 0.2 
Net gain on derivatives$10.3 $2.1 $14.1 $4.7 
Income (loss) from equity investments
Equity warrants$3.8 $0.2 $3.0 $(0.3)
Net loss on derivatives$3.8 $0.2 $3.0 $(0.3)
Other non-interest income
Foreign currency contracts $5.5 $0.3 $9.9 $2.3 
Net gain on derivatives$5.5 $0.3 $9.9 $2.3 
Schedule of Fair Value of the Company's Derivative Instruments
The following table summarizes the fair value of the Company's derivative instruments on a gross basis as of June 30, 2026, December 31, 2025, and June 30, 2025. The change in the notional amounts of these derivatives from June 30, 2025 to June 30, 2026 indicates the volume of the Company's derivative transaction activity during these periods. The derivative asset and liability balances are presented on a gross basis, prior to the application of bilateral collateral and master netting agreements. Total derivative assets and liabilities are adjusted to take into account the impact of legally enforceable master netting agreements that allow the Company to settle all derivative contracts with the same counterparty on a net basis and to offset the net derivative position with the related cash collateral. Where master netting agreements are not in effect or are not enforceable under bankruptcy laws, the Company does not adjust those derivative amounts with counterparties.
June 30, 2026December 31, 2025June 30, 2025
Fair ValueFair ValueFair Value
Notional
Amount		Derivative AssetsDerivative LiabilitiesNotional
Amount		Derivative AssetsDerivative LiabilitiesNotional
Amount		Derivative AssetsDerivative Liabilities
(in millions)
Derivatives designated as hedging instruments:
Fair value hedges
Interest rate contracts$5,706 $16 $— $7,216 $85 $22 $6,033 $23 $56 
Total$5,706 $16 $— $7,216 $85 $22 $6,033 $23 $56 
Derivatives not designated as hedging instruments:
Foreign currency contracts$616 $26 $20 $530 $8 $4 $109 $1 $2 
Forward contracts33,325 42 59 27,271 21 43 24,687 63 111 
Futures contracts (1)18,486 — — 23,170 — — 15,690 — — 
Interest rate lock commitments4,127 22 1 3,201 20 1 2,947 24 — 
Interest rate contracts10,991 22 24 10,228 34 36 7,984 32 34 
Risk participation agreements301 — — 242 — — 226 — — 
Equity warrants49 37 — 50 39 — 63 33 — 
Total$67,895 $149 $104 $64,692 $122 $84 $51,706 $153 $147 
Margin— 411 — — 366 7 — 347 (41)
Total, including margin$67,895 $560 $104 $64,692 $488 $91 $51,706 $500 $106 
(1)The Company enters into futures purchase and sales contracts that are subject to daily remargining and almost all of which are based on three-month SOFR to hedge against its MSR valuation exposure. The notional amount on these contracts is substantial as these contracts have a short duration and are intended to cover the longer duration of MSR hedges.
The fair value of derivative contracts, after taking into account the effects of master netting agreements, is included in Other assets or Other liabilities on the Consolidated Balance Sheet, as summarized in the table below:
June 30, 2026December 31, 2025June 30, 2025
Gross amount of recognized assets (liabilities)Gross offsetNet assets (liabilities)Gross amount of recognized assets (liabilities)Gross offsetNet assets (liabilities)Gross amount of recognized assets (liabilities)Gross offsetNet assets (liabilities)
(in millions)
Derivatives subject to master netting arrangements:
Assets
Foreign currency contracts$25 $— $25 $6 $— $6 $— $— $— 
Forward contracts42 — 42 21 — 21 63 — 63 
Interest rate contracts30 — 30 86 — 86 25 — 25 
Margin411 — 411 366 — 366 347 — 347 
Netting— (64)(64)— (85)(85)— (134)(134)
$508 $(64)$444 $479 $(85)$394 $435 $(134)$301 
Liabilities
Foreign currency contracts$(1)$— $(1)$(1)$— $(1)$(2)$— $(2)
Forward contracts(57)— (57)(40)— (40)(108)— (108)
Interest rate contracts(10)— (10)(46)— (46)(78)— (78)
Margin— — — (7)— (7)41 — 41 
Netting— 64 64 — 85 85 — 134 134 
$(68)$64 $(4)$(94)$85 $(9)$(147)$134 $(13)
Derivatives not subject to master netting arrangements:
Assets
Foreign currency contracts$1 $— $1 $2 $— $2 $1 $— $1 
Interest rate lock commitments22 — 22 20 — 20 24 — 24 
Interest rate contracts8 — 8 33 — 33 30 — 30 
Equity warrants37 — 37 39 — 39 33 — 33 
$68 $— $68 $94 $— $94 $88 $— $88 
Liabilities
Foreign currency contracts$(19)$— $(19)$(3)$— $(3)$— $— $— 
Forward contracts(2)— (2)(3)— (3)(3)— (3)
Interest rate lock commitments(1)— (1)(1)— (1)— — — 
Interest rate contracts(14)— (14)(12)— (12)(12)— (12)
$(36)$— $(36)$(19)$— $(19)$(15)$— $(15)
Total derivatives and margin
Assets$576 $(64)$512 $573 $(85)$488 $523 $(134)$389 
Liabilities(104)64 (40)(113)85 (28)(162)134 (28)