DERIVATIVES (Tables)

6 Months Ended

Jun. 30, 2026

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of derivative instruments in consolidated balance sheets

The following table presents derivative assets and liabilities included in the Consolidated Balance Sheets:


	June 30, 2026			December 31, 2025
(dollars in millions)	Notional Amount	Derivative Assets	Derivative Liabilities	Notional Amount	Derivative Assets	Derivative Liabilities
Derivatives designated as hedging instruments:
Interest rate contracts	$60,182	$190	$52	$67,358	$366	$25
Derivatives not designated as hedging instruments:
Interest rate contracts	194,972	139	515	180,977	187	446
Foreign exchange contracts	36,756	578	368	40,401	510	373
Commodities contracts	14,131	629	585	10,974	458	405
TBA contracts	7,647	13	16	3,043	2	6
Other contracts	1,526	29	3	968	9	3
Total derivatives not designated as hedging instruments	255,032	1,388	1,487	236,363	1,166	1,233
Total gross derivatives	315,214	1,578	1,539	303,721	1,532	1,258
Less: Gross amounts offset in the Consolidated Balance Sheets(1)		(462)	(462)		(342)	(342)
Less: Cash collateral applied(1)		(544)	(67)		(494)	(137)
Total net derivatives presented in the Consolidated Balance Sheets		$572	$1,010		$696	$779

(1) Amounts represent the impact of enforceable master netting agreements that allow the Company to net settle positive and negative positions, as well as collateral paid and received.

Schedule of fair value hedges

The following table presents the effect of fair value hedges on the Consolidated Statements of Operations and the respective line items affected for each hedged item:


	Location and Amount of Gains (Losses) Recognized
	Interest Income	Interest Expense
(dollars in millions)	Investment Securities	Long-Term Borrowed Funds
Three Months Ended June 30, 2026
Gains (losses) on fair value hedges recognized on:
Hedged items	($58)	$—
Derivatives	60	—
Amounts related to interest settlements on derivatives	(2)	—
Total net interest income recognized on fair value hedges	$—	$—
Three Months Ended June 30, 2025
Gains (losses) on fair value hedges recognized on:
Hedged items	$50	($2)
Derivatives	(50)	2
Amounts related to interest settlements on derivatives	13	(3)
Total net interest income recognized on fair value hedges	$13	($3)
Six Months Ended June 30, 2026
Gains (losses) on fair value hedges recognized on:
Hedged items	($97)	$—
Derivatives	99	—
Amounts related to interest settlements on derivatives	(2)	—
Total net interest income recognized on fair value hedges	$—	$—
Six Months Ended June 30, 2025
Gains (losses) on fair value hedges recognized on:
Hedged items	$166	($4)
Derivatives	(168)	4
Amounts related to interest settlements on derivatives	24	(5)
Total net interest income recognized on fair value hedges	$22	($5)

The following table reflects amounts recorded in the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges:

June 30, 2026

December 31, 2025

(dollars in millions)

Debt securities available for sale(1)

Carrying amount of hedged assets(2)

$6,458

$8,009

Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items

(48)

(1) Includes the amortized cost basis of closed portfolios used to designate hedging relationships under the portfolio layer method. The hedged item is a layer of the closed portfolio which is expected to be remaining at the end of the hedging relationship. As of June 30, 2026 and December 31, 2025, the amortized cost basis of the closed portfolios used in these hedging relationships was $4.8 billion and $5.1 billion, respectively, including associated cumulative basis adjustments of $(40) million and $17 million, respectively. The amount of the designated hedging instruments was $3.8 billion at June 30, 2026 and December 31, 2025.

(2) Carrying amount represents amortized cost.

Schedule of effect of cash flow hedges on net income and stockholders' equity

The following table presents the pretax net gains (losses) recorded in the Consolidated Statements of Operations and in the Consolidated Statements of Comprehensive Income related to derivative instruments designated as cash flow hedges:


	Three Months Ended June 30,		Six Months Ended June 30,
(dollars in millions)	2026	2025	2026	2025
Pretax net gains (losses) recognized in OCI	($246)	$113	($415)	$397
Pretax net gains (losses) reclassified from AOCI into interest income	(73)	(196)	(186)	(398)
Pretax net gains (losses) reclassified from AOCI into noninterest income	—	(1)	—	(1)
Pretax net gains (losses) reclassified from AOCI into interest expense	—	(1)	—	(1)

Schedule of effect of derivative Instruments on net income

The following table presents the effect of economic hedges on noninterest income:


	Amounts Recognized in Noninterest Income for the
	Three Months Ended June 30,		Six Months Ended June 30,		Affected Line Item in the Consolidated Statements of Operations
(dollars in millions)	2026	2025	2026	2025
Economic hedge type:
Customer interest rate contracts	($123)	$70	($240)	$235	Foreign exchange and derivative products
Derivatives hedging interest rate risk	136	(62)	262	(219)	Foreign exchange and derivative products
Customer foreign exchange contracts	(63)	319	(151)	417	Foreign exchange and derivative products
Derivatives hedging foreign exchange risk	88	(399)	206	(530)	Foreign exchange and derivative products
Customer commodity contracts	(268)	(302)	41	41	Foreign exchange and derivative products
Derivatives hedging commodity price risk	274	307	(26)	(29)	Foreign exchange and derivative products
Residential loan commitments	—	3	(11)	9	Mortgage banking fees
Derivatives hedging residential loan commitments and mortgage loans held for sale, at fair value	(5)	(1)	14	(14)	Mortgage banking fees
Derivative contracts used to hedge residential MSRs	(14)	5	(22)	27	Mortgage banking fees
Derivative contracts used to hedge equity price risk	13	11	14	11	Capital markets fees
Total	$38	($49)	$87	($52)