v3.26.1
Derivative financial instruments (Tables)
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Information about Interest Rate Swap Agreements
Information about interest rate swap agreements entered into for interest rate risk management purposes summarized by type of financial instrument those agreements were intended to hedge follows.
Notional
Amount		Weighted-Average
Maturity
(In years)
Weighted-
Average Rate

Fair Value
Gain (Loss) (a)
(Dollars in millions)
Fixed
Variable
June 30, 2026
Fair value hedges:
Fixed rate long-term borrowings (b)$6,100 4.33.56%3.79%$(10)
Cash flow hedges:
Interest payments on variable rate commercial real estate and commercial
   and industrial loans (b) (c)		26,200 1.13.703.63(7)
Total$32,300 1.7$(17)
December 31, 2025
Fair value hedges:
Fixed rate long-term borrowings (b) (d)$6,100 4.83.56%4.02%$(9)
Cash flow hedges:
Interest payments on variable rate commercial real estate and commercial
   and industrial loans (b) (e)		24,900 1.33.633.81(6)
Total$31,000 2.0$(15)
__________________________________________________________________________________
(a)Certain clearinghouse exchanges consider payments by counterparties for variation margin on derivative instruments to be settlements of those positions. The impact of such payments for interest rate swap agreements designated as fair value hedges was a net settlement of losses of $92 million and $6 million at June 30, 2026 and December 31, 2025, respectively. The impact of such payments on interest rate swap agreements designated as cash flow hedges was a net settlement of losses of $61 million and of gains of $96 million at June 30, 2026 and December 31, 2025, respectively.
(b)Under the terms of these agreements, the Company receives settlement amounts at a fixed rate and pays at a variable rate.
(c)Includes notional amount and terms of $10.2 billion of forward-starting interest rate swap agreements that become effective in 2026 and 2027.
(d)Includes notional amount and terms of $1.8 billion of forward-starting interest rate swap agreements that became effective in 2026.
(e)Includes notional amount and terms of $9.7 billion of forward-starting interest rate swap agreements that become effective in 2026 and 2027.
Information about Fair Values of Derivative Instruments in Consolidated Balance Sheet
Information about the fair values of derivative instruments in the Company’s Consolidated Balance Sheet and Consolidated Statement of Income follows.
Asset DerivativesLiability Derivatives
Fair ValueFair Value
(Dollars in millions)June 30,
2026		December 31,
2025		June 30,
2026		December 31,
2025
Derivatives designated and qualifying as hedging instruments (a)
Interest rate swap agreements$— $— $17 $15 
Commitments to sell real estate loans— 1 1 1 
— 1 18 16 
Derivatives not designated and qualifying as hedging instruments (a)
Mortgage banking:
Commitments to originate real estate loans for sale9 17 4 21 
Commitments to sell real estate loans8 24 2 6 
Interest rate and other contracts (b)7 13 3 2 
24 54 9 29 
Other:
Interest rate contracts (b)196 173 456 394 
Foreign exchange and other option and futures contracts22 17 20 15 
218 190 476 409 
Total derivatives$242 $245 $503 $454 
__________________________________________________________________________________
(a)Asset derivatives are included in Accrued interest and other assets and liability derivatives are included in Accrued interest and other liabilities in the Consolidated Balance Sheet.
(b)The impact of variation margin payments at June 30, 2026 and December 31, 2025 was a reduction of the estimated fair value of interest rate contracts not designated as hedging instruments in an asset position of $366 million and $341 million, respectively, and in a liability position of $6 million and $32 million, respectively.
Carrying Amount of the Hedged ItemCumulative Amount of Fair Value Hedging Adjustment Increasing (Decreasing) the Carrying
Amount of the Hedged Item
(Dollars in millions)June 30,
2026		December 31, 2025June 30,
2026		December 31, 2025
Location in the Consolidated Balance Sheet
of the Hedged Items in Fair Value Hedges
Long-term borrowings$5,986 $6,072 $(103)$(16)
Information about Fair Values of Derivative Instruments in Consolidated Statement of Income
Amount of Gain (Loss) Recognized
Three Months Ended June 30,
20262025
(Dollars in millions)
Derivative
Hedged Item
Derivative
Hedged Item
Derivatives in fair value hedging relationships    
Interest rate swap agreements:    
Fixed rate long-term borrowings (a)$(54)$54 $54 $(55)
Derivatives not designated as hedging instruments    
Interest rate and other contracts (b)$17 $7 
Foreign exchange and other option and futures contracts (c)5 2 
Total$22 $9 
__________________________________________________________________________________
(a)Reported as an adjustment to Interest expense in the Company's Consolidated Statement of Income.
(b)Includes gains of $18 million and $7 million in Trading account and other non-hedging derivative gains for the three months ended June 30, 2026 and 2025, respectively, and losses of $1 million in Mortgage banking revenues in the Company's Consolidated Statement of Income for the three months ended June 30, 2026.
(c)Included in Trading account and other non-hedging derivative gains in the Company's Consolidated Statement of Income.
Offsetting Liabilities Information about master netting agreements and collateral postings related to the derivative instruments in the Company's Consolidated Balance Sheet follows.
(Dollars in millions)Fair Value Amount in Consolidated Balance SheetMaster Netting AgreementsCollateral (a)Net
Amount
June 30, 2026
Derivative assets
Clearinghouse settlements (b)$13 $— $— $13 
Subject to master netting agreements167 (14)(148)5 
Not subject to master netting agreements (c)62 — (1)61 
Total$242 $(14)$(149)$79 
Derivative liabilities
Clearinghouse settlements (b)$21 $— $— $21 
Subject to master netting agreements14 (14)3 3 
Not subject to master netting agreements (c)468 — — 468 
Total$503 $(14)$3 $492 
December 31, 2025
Derivative assets
Clearinghouse settlements (b)$8 $— $— $8 
Subject to master netting agreements98(33)(49)16
Not subject to master netting agreements (c)139 — — 139 
Total$245 $(33)$(49)$163 
Derivative liabilities
Clearinghouse settlements (b)$16 $— $— $16 
Subject to master netting agreements38(33)(7)(2)
Not subject to master netting agreements (c)400 — (1)399 
Total$454 $(33)$(8)$413 
__________________________________________________________________________________
(a)Includes postings of cash and investment securities only and excludes initial margin amounts posted to clearinghouses.
(b)The fair value of derivative assets and derivative liabilities subject to clearinghouse settlements are presented net of the variation margin payments in the Consolidated Balance Sheet.
(c)The fair value of derivative assets and derivative liabilities not subject to master netting agreements predominantly relate to transactions with commercial customers.
Offsetting Assets Information about master netting agreements and collateral postings related to the derivative instruments in the Company's Consolidated Balance Sheet follows.
(Dollars in millions)Fair Value Amount in Consolidated Balance SheetMaster Netting AgreementsCollateral (a)Net
Amount
June 30, 2026
Derivative assets
Clearinghouse settlements (b)$13 $— $— $13 
Subject to master netting agreements167 (14)(148)5 
Not subject to master netting agreements (c)62 — (1)61 
Total$242 $(14)$(149)$79 
Derivative liabilities
Clearinghouse settlements (b)$21 $— $— $21 
Subject to master netting agreements14 (14)3 3 
Not subject to master netting agreements (c)468 — — 468 
Total$503 $(14)$3 $492 
December 31, 2025
Derivative assets
Clearinghouse settlements (b)$8 $— $— $8 
Subject to master netting agreements98(33)(49)16
Not subject to master netting agreements (c)139 — — 139 
Total$245 $(33)$(49)$163 
Derivative liabilities
Clearinghouse settlements (b)$16 $— $— $16 
Subject to master netting agreements38(33)(7)(2)
Not subject to master netting agreements (c)400 — (1)399 
Total$454 $(33)$(8)$413 
__________________________________________________________________________________
(a)Includes postings of cash and investment securities only and excludes initial margin amounts posted to clearinghouses.
(b)The fair value of derivative assets and derivative liabilities subject to clearinghouse settlements are presented net of the variation margin payments in the Consolidated Balance Sheet.
(c)The fair value of derivative assets and derivative liabilities not subject to master netting agreements predominantly relate to transactions with commercial customers.