v3.26.1
Fair value measurements (Tables)
6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis
The following tables present assets and liabilities at June 30, 2026 and December 31, 2025 measured at fair value on a recurring basis.
(Dollars in millions)Fair Value MeasurementsLevel 1Level 2Level 3
June 30, 2026
Investment securities available for sale:
U.S. Treasury$3,227 $— $3,227 $— 
Mortgage-backed securities:
Government issued or guaranteed:
Commercial4,755 — 4,755 — 
Residential17,387 — 17,387 — 
Other— — 
Total investment securities available for sale25,370 — 25,370 — 
Equity securities245 245 — — 
Real estate loans held for sale515 — 515 — 
Residential mortgage loan servicing rights540 — — 540 
Other assets332 13 315 
Total assets$27,002 $258 $26,200 $544 
Other liabilities$503 $— $503 $— 
Total liabilities$503 $— $503 $— 
December 31, 2025
Investment securities available for sale:
U.S. Treasury$6,343 $— $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 assets342 12 327 
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-month and six-month periods ended June 30, 2026 are presented in the following table.
(Dollars in millions)Residential Mortgage Loan Servicing Rights
(Level 3)
Three Months Ended June 30, 2026
Balance at March 31, 2026 — at fair value$542 
Additions
Changes in fair value included in Mortgage banking revenues (a)(9)
Balance at June 30, 2026 — at fair value$540 
Six Months Ended June 30, 2026
Balance at December 31, 2025 — at amortized cost$287 
January 1, 2026 - fair value accounting election263 
Additions15 
Changes in fair value included in Mortgage banking revenues (a)(25)
Balance at June 30, 2026 — at fair value$540 
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(a)Includes a $16 million and a $33 million reduction in fair value attributable to the realization of expected net servicing cash flows over time for the three-month and six-month periods ended June 30, 2026, respectively.
Fair Value Measurement Inputs and Valuation Techniques The key economic assumptions used to determine the fair value of residential capitalized servicing rights at June 30, 2026 and the sensitivity of such value to changes in those assumptions are summarized in the table that follows. Those calculated sensitivities are hypothetical and actual changes in the fair value of capitalized servicing rights may differ significantly from the amounts presented herein. The effect of a variation in a particular assumption on the fair value of the servicing rights is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another which may magnify or counteract the sensitivities. The changes in assumptions are presumed to be instantaneous.
(Dollars in millions)
Weighted-average prepayment speeds (range 5% - 18%)
8.00%
Impact on fair value of 10% adverse change$(15)
Impact on fair value of 20% adverse change(30)
Weighted-average OAS (range 5% - 20%)
7.20%
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 June 30, 2026 and 2025.
June 30,
(Dollars in millions)20262025
Level 2$100 $166 
Level 3272 478 
$372 $644 
Changes in fair value recognized for the three months ended$(51)$(115)
Changes in fair value recognized for the six months ended(77)(157)
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
June 30, 2026
Financial assets:
Cash and due from banks$1,939 $1,939 $1,746 $193 $— 
Interest-bearing deposits at banks15,499 15,499 — 15,499 — 
Investment securities held to maturity11,908 11,123 — 11,084 39 
Loans, net141,017 140,793 — 4,316 136,477 
Financial liabilities:
Time deposits (a)14,988 14,946 — 14,946 — 
Short-term borrowings4,614 4,614 — 4,614 — 
Long-term borrowings13,568 13,785 — 13,785 — 
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 $2.9 billion and $2.8 billion of time deposits with balances greater than $250,000 at June 30, 2026 and December 31, 2025, respectively.