v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Bancorp measures certain financial assets and liabilities at fair value in accordance with U.S. GAAP, which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP also establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the instrument’s fair value measurement. For more information regarding the fair value hierarchy, refer to Note 1 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2025.

Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables summarize assets and liabilities measured at fair value on a recurring basis as of:
Fair Value Measurements Using
June 30, 2026 ($ in millions)Level 1Level 2Level 3Total Fair Value
Assets:
Available-for-sale debt and other securities:
U.S. Treasury and federal agencies securities$1,899 — — 1,899 
Mortgage-backed securities:
Agency residential mortgage-backed securities— 15,029 — 15,029 
Agency commercial mortgage-backed securities— 21,357 — 21,357 
Non-agency commercial mortgage-backed securities— 2,618 — 2,618 
Asset-backed securities and other debt securities— 2,303 — 2,303 
Available-for-sale debt and other securities(a)
1,899 41,307 — 43,206 
Trading debt securities:
U.S. Treasury and federal agencies securities659 38 — 697 
Obligations of states and political subdivisions securities— 149 — 149 
Agency residential mortgage-backed securities— 42 — 42 
Asset-backed securities and other debt securities— 965 — 965 
Trading debt securities659 1,194 — 1,853 
Equity securities473 22 — 495 
Commercial mortgage loans held for sale— 3 — 3 
Residential mortgage loans held for sale— 695 — 695 
Residential mortgage loans(b)
— — 102 102 
Residential mortgage servicing rights— — 1,582 1,582 
Derivative assets:
Interest rate contracts3 609 7 619 
Foreign exchange contracts— 503 — 503 
Commodity contracts130 1,226 — 1,356 
Derivative assets(c)
133 2,338 7 2,478 
Total assets$3,164 45,559 1,691 50,414 
Liabilities:
Derivative liabilities:
Interest rate contracts$3 790 9 802 
Foreign exchange contracts— 437 — 437 
Equity contracts— — 70 70 
Commodity contracts130 1,227 — 1,357 
Derivative liabilities(d)
133 2,454 79 2,666 
Short positions:
U.S. Treasury and federal agencies securities129 — — 129 
Asset-backed securities and other debt securities— 316 — 316 
Equity securities60 — — 60 
Short positions(d)
189 316 — 505 
Total liabilities$322 2,770 79 3,171 
(a)Excludes FHLB, FRB and DTCC restricted stock holdings totaling $368, $889 and $3, respectively, at June 30, 2026.
(b)Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment.
(c)Included in other assets in the Condensed Consolidated Balance Sheets.
(d)Included in other liabilities in the Condensed Consolidated Balance Sheets.
Fair Value Measurements Using
December 31, 2025 ($ in millions)Level 1Level 2Level 3Total Fair Value
Assets:
Available-for-sale debt and other securities:
U.S. Treasury and federal agencies securities$1,575 — — 1,575 
Mortgage-backed securities:
Agency residential mortgage-backed securities— 8,623 — 8,623 
Agency commercial mortgage-backed securities— 20,187 — 20,187 
Non-agency commercial mortgage-backed securities— 2,833 — 2,833 
Asset-backed securities and other debt securities— 2,267 — 2,267 
Available-for-sale debt and other securities(a)
1,575 33,910 — 35,485 
Trading debt securities:
U.S. Treasury and federal agencies securities482 12 — 494 
Obligations of states and political subdivisions securities— 63 — 63 
Agency residential mortgage-backed securities— 49 — 49 
Asset-backed securities and other debt securities— 451 — 451 
Trading debt securities482 575 — 1,057 
Equity securities436 17 — 453 
Commercial mortgage loans held for sale— — — — 
Residential mortgage loans held for sale— 658 — 658 
Residential mortgage loans(b)
— — 106 106 
Residential mortgage servicing rights— — 1,598 1,598 
Derivative assets:
Interest rate contracts1 457 5 463 
Foreign exchange contracts— 659 — 659 
Commodity contracts224 522 — 746 
Derivative assets(c)
225 1,638 5 1,868 
Total assets$2,718 36,798 1,709 41,225 
Liabilities:
Derivative liabilities:
Interest rate contracts$3 537 4 544 
Foreign exchange contracts— 628 — 628 
Equity contracts— — 124 124 
Commodity contracts35 703 — 738 
Derivative liabilities(d)
38 1,868 128 2,034 
Short positions:
U.S. Treasury and federal agencies securities82 3 — 85 
Asset-backed securities and other debt securities— 218 — 218 
Equity securities48 — — 48 
Short positions(d)
130 221 — 351 
Total liabilities$168 2,089 128 2,385 
(a)Excludes FHLB, FRB and DTCC restricted stock holdings totaling $167, $505 and $2, respectively, at December 31, 2025.
(b)Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment.
(c)Included in other assets in the Condensed Consolidated Balance Sheets.
(d)Included in other liabilities in the Condensed Consolidated Balance Sheets.

For further information on the valuation methodologies used for significant instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, refer to Note 28 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2025.
The following tables are a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):
For the three months ended June 30, 2026 ($ in millions)
Residential
Mortgage
Loans		Residential Mortgage Servicing
Rights
Interest Rate
Derivatives,
Net(a)
Equity
Derivatives		Total
Fair Value
Balance, beginning of period$105 1,583 (3)(82)1,603 
Total (losses) gains (realized/unrealized):(b)(c)
 Included in earnings— (36)18 (1)(19)
Purchases/originations/acquisitions— 35 — — 35 
Settlements(3)— (17)13 (7)
Transfers into Level 3(d)
— — — — — 
Balance, end of period$102 1,582 (2)(70)1,612 
The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at June 30, 2026(c)
$— (9)8 (1)(2)
(a)Net interest rate derivatives include derivative assets and liabilities of $7 and $9, respectively, as of June 30, 2026.
(b)There were no unrealized gains or losses for the period included in other comprehensive income for instruments still held at June 30, 2026.
(c)Included in the following line items in the Condensed Consolidated Statements of Income: mortgage banking net revenue for residential mortgage loans and residential mortgage servicing rights, mortgage banking net revenue and capital markets fees for interest rate derivatives, and other noninterest income for equity derivatives.
(d)Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment.

For the three months ended June 30, 2025 ($ in millions)
Residential
Mortgage
Loans		Residential Mortgage Servicing
Rights
Interest Rate
Derivatives,
Net(a)
Equity
Derivatives		Total
Fair Value
Balance, beginning of period$109 1,663 — (173)1,599 
Total (losses) gains (realized/unrealized):(b)(c)
 Included in earnings— (49)12 (1)(38)
Purchases/originations— 15 — — 15 
Settlements(3)— (10)29 16 
Transfers into Level 3(d)
1 — — — 1 
Balance, end of period$107 1,629 2 (145)1,593 
The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at June 30, 2025(c)
$— (26)8 (1)(19)
(a)Net interest rate derivatives include derivative assets and liabilities of $7 and $5, respectively, as of June 30, 2025.
(b)There were no unrealized gains or losses for the period included in other comprehensive income for instruments still held at June 30, 2025.
(c)Included in the following line items in the Condensed Consolidated Statements of Income: mortgage banking net revenue for residential mortgage loans and residential mortgage servicing rights, mortgage banking net revenue and capital markets fees for interest rate derivatives, and other noninterest income for equity derivatives.
(d)Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment.
For the six months ended June 30, 2026 ($ in millions)
Residential
Mortgage
Loans		Residential Mortgage Servicing
Rights
Interest Rate
Derivatives,
Net(a)
Equity
Derivatives		Total
Fair Value
Balance, beginning of period$106 1,598 1 (124)1,581 
Total (losses) gains (realized/unrealized):(b)(c)
 Included in earnings(1)(74)34 7 (34)
Purchases/originations/acquisitions— 58 (6)(5)47 
Settlements(5)— (31)52 16 
Transfers into Level 3(d)
2 — — — 2 
Balance, end of period$102 1,582 (2)(70)1,612 
The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at June 30, 2026(c)
$(1)(25)9 7 (10)
(a)Net interest rate derivatives include derivative assets and liabilities of $7 and $9, respectively, as of June 30, 2026.
(b)There were no unrealized gains or losses for the period included in other comprehensive income for instruments still held at June 30, 2026.
(c)Included in the following line items in the Condensed Consolidated Statements of Income: mortgage banking net revenue for residential mortgage loans and residential mortgage servicing rights, mortgage banking net revenue and capital markets fees for interest rate derivatives, and other noninterest income for equity derivatives.
(d)Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment.

For the six months ended June 30, 2025 ($ in millions)
Residential
Mortgage
Loans		Residential Mortgage Servicing
Rights
Interest Rate
Derivatives,
Net(a)
Equity
Derivatives		Total
Fair Value
Balance, beginning of period$108 1,704 (3)(170)1,639 
Total (losses) gains (realized/unrealized):(b)(c)
 Included in earnings3 (100)27 (19)(89)
Purchases/originations— 25 (1)— 24 
Settlements(6)— (21)44 17 
Transfers into Level 3(d)
2 — — — 2 
Balance, end of period$107 1,629 2 (145)1,593 
The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at June 30, 2025(c)
$3 (60)8 (19)(68)
(a)Net interest rate derivatives include derivative assets and liabilities of $7 and $5, respectively, as of June 30, 2025.
(b)There were no unrealized gains or losses for the period included in other comprehensive income for instruments still held at June 30, 2025.
(c)Included in the following line items in the Condensed Consolidated Statements of Income: mortgage banking net revenue for residential mortgage loans and residential mortgage servicing rights, mortgage banking net revenue and capital markets fees for interest rate derivatives, and other noninterest income for equity derivatives.
(d)Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment.
The following tables present information as of June 30, 2026 and 2025 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured at fair value on a recurring basis:
As of June 30, 2026 ($ in millions)
Financial InstrumentFair ValueValuation
Technique		Significant
Unobservable Inputs		Range of Inputs
Weighted-Average
Residential mortgage loans$102 Loss rate modelInterest rate risk factor(52.0)-6.7%(10.5)%
(a)
Credit risk factor— -0.7%0.1 %
(a)
Residential mortgage servicing rights1,582 DCFPrepayment speed— -90.3%
(Fixed)
6.8 %
(b)
(Adjustable)
21.1 %
(b)
OAS (bps)335 -1,827
(Fixed)
376
(b)
(Adjustable)
702
(b)
IRLCs, net7 DCFLoan closing rates0.7 -99.1%83.9 %
(c)
Swap associated with the sale of Visa, Inc. Class B Shares(70)DCFTiming of the resolution
   of the Covered Litigation		Q1 2028-Q2 2029Q3 2028
(d)
(a)Unobservable inputs were weighted by the relative carrying value of the instruments.
(b)Unobservable inputs were weighted by the relative unpaid principal balance of the instruments.
(c)Unobservable inputs were weighted by the relative notional amount of the instruments.
(d)Unobservable inputs were weighted by the probability of the final funding date of the instruments.

As of June 30, 2025 ($ in millions)
Financial InstrumentFair ValueValuation
Technique		Significant
Unobservable Inputs		Range of InputsWeighted-Average
Residential mortgage loans$107 Loss rate modelInterest rate risk factor(52.0)-6.1 %(11.4)%
(a)
Credit risk factor— -0.8 %0.1 %
(a)
Residential mortgage servicing rights1,629 DCFPrepayment speed— -100.0 %(Fixed)6.5 %
(b)
(Adjustable)17.2 %
(b)
OAS (bps)335-1,821(Fixed)433
(b)
(Adjustable)723
(b)
IRLCs, net7 DCFLoan closing rates18.6 -96.0 %82.2 %
(c)
Swap associated with the sale of Visa, Inc. Class B Shares(145)DCFTiming of the resolution
   of the Covered Litigation		Q2 2027-Q2 2028Q4 2027
(d)
(a)Unobservable inputs were weighted by the relative carrying value of the instruments.
(b)Unobservable inputs were weighted by the relative unpaid principal balance of the instruments.
(c)Unobservable inputs were weighted by the relative notional amount of the instruments.
(d)Unobservable inputs were weighted by the probability of the final funding date of the instruments.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Certain assets and liabilities are measured at fair value on a nonrecurring basis. These assets and liabilities are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment.

The following tables provide the fair value hierarchy and carrying amount of all assets that were held as of June 30, 2026 and 2025, and for which a nonrecurring fair value adjustment was recorded during the three and six months ended June 30, 2026 and 2025, and the related gains and losses from fair value adjustments on assets sold during the period as well as assets still held as of the end of the period.
Fair Value Measurements UsingTotal (Losses) Gains
As of June 30, 2026 ($ in millions)Level 1Level 2Level 3Total
For the three months ended June 30, 2026
For the six
months ended June 30, 2026
Commercial loans and leases$— — 195 195 (77)(94)
Consumer and residential mortgage loans— — 207 207 (1)(4)
OREO— — 1 1 2 2 
Bank premises and equipment— — 36 36 (1)(24)
Private equity investments— — — — (13)(13)
Total$— — 439 439 (90)(133)
Fair Value Measurements UsingTotal (Losses) Gains
As of June 30, 2025 ($ in millions)Level 1Level 2Level 3Total
For the three months ended
 June 30, 2025
For the six
months ended
June 30, 2025
Commercial loans and leases$— — 222 222 (78)(204)
Consumer and residential mortgage loans— — 194 194 (3)(7)
OREO— — 5 5 — 1 
Private equity investments— 13 — 13 — 4 
Total$— 13 421 434 (81)(206)

The following tables present information as of June 30, 2026 and 2025 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured at fair value on a nonrecurring basis:
As of June 30, 2026 ($ in millions)
Financial InstrumentFair ValueValuation TechniqueSignificant Unobservable InputsRanges of
Inputs		Weighted-Average
Commercial loans and leases$195 Appraised valueCollateral valueNMNM
Consumer and residential mortgage loans207 Appraised valueCollateral valueNMNM
OREO1 Appraised valueAppraised valueNMNM
Bank premises and equipment36 Appraised valueAppraised valueNMNM
Private equity investments— Comparable company analysisMarket comparable transactionsNMNM

As of June 30, 2025 ($ in millions)
Financial InstrumentFair ValueValuation TechniqueSignificant Unobservable InputsRanges of
Inputs		Weighted-Average
Commercial loans and leases$222 Appraised valueCollateral valueNMNM
Consumer and residential mortgage loans194 Appraised valueCollateral valueNMNM
OREO5 Appraised valueAppraised valueNMNM

For further information on the valuation methodologies used for certain assets measured at fair value on a nonrecurring basis, refer to Note 28 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2025.

Private equity investments
The Bancorp accounts for its private equity investments using the measurement alternative to fair value, except for those accounted for under the equity method of accounting. Under the measurement alternative, the Bancorp carries each investment at its cost basis minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. The Bancorp did not recognize gains during both the three and six months ended June 30, 2026 and did not recognize gains and recognized gains of $4 million during the three and six months ended June 30, 2025, respectively, resulting from observable price changes. The carrying value of the Bancorp’s private equity investments still held as of June 30, 2026 includes a cumulative $23 million of positive adjustments as a result of observable price changes since January 1, 2018. Because these adjustments are based on observable transactions in inactive markets, they are classified in Level 2 of the fair value hierarchy.

For private equity investments which are accounted for using the measurement alternative to fair value, the Bancorp qualitatively evaluates each investment quarterly to determine if impairment may exist. If necessary, the Bancorp then measures impairment by estimating the value of its investment and comparing that to the investment’s carrying value, whether or not the Bancorp considers the impairment to be temporary. These valuations are typically developed using a DCF method, but other methods may be used if more appropriate for the circumstances. These valuations are based on unobservable inputs and therefore are classified in Level 3 of the fair value hierarchy. The Bancorp recognized $13 million of impairment charges on its private equity investments during both the three and six months ended June 30, 2026 and recognized an immaterial amount of impairment charges during both the three and six months ended June 30, 2025. The carrying value of the Bancorp’s private equity investments still held as of June 30, 2026 includes a cumulative $28 million of impairment charges recognized since adoption of the measurement alternative to fair value on January 1, 2018.

Fair Value Option
The Bancorp elected to measure certain residential and commercial mortgage loans held for sale under the fair value option as allowed under U.S. GAAP. Electing to measure these loans held for sale at fair value reduces certain timing differences and better matches changes in the value of these assets with changes in the value of derivatives used as economic hedges for these assets. Management’s intent to sell residential or commercial mortgage loans classified as held for sale may change over time due to such factors as changes in the overall
liquidity in markets or changes in characteristics specific to certain loans held for sale. Consequently, these loans may be reclassified to loans held for investment and maintained in the Bancorp’s loan portfolio. In such cases, the loans will continue to be measured at fair value. Fair value changes recognized in earnings for residential mortgage loans held at June 30, 2026 for which the fair value option was elected included losses of $12 million and $35 million for the three and six months ended June 30, 2026, respectively. Fair value changes recognized in earnings for residential mortgage loans held at June 30, 2025 for which the fair value option was elected included losses of $7 million and $9 million for the three and six months ended June 30, 2025, respectively. These changes are reported in mortgage banking net revenue in the Condensed Consolidated Statements of Income. Fair value changes recognized in earnings for commercial mortgage loans held at June 30, 2026 for which the fair value option was elected included gains of an immaterial amount for both the three and six months ended June 30, 2026.

Valuation adjustments related to instrument-specific credit risk for residential mortgage loans measured at fair value negatively impacted the fair value of those loans by an immaterial amount at both June 30, 2026 and December 31, 2025. Valuation adjustments related to instrument-specific credit risk for commercial mortgage loans measured at fair value had an immaterial impact on the fair value of those loans at June 30, 2026. Interest on loans measured at fair value is accrued as it is earned using the effective interest method and is reported as interest income in the Condensed Consolidated Statements of Income.

The following table summarizes the fair value and the unpaid principal balance for residential and commercial mortgage loans measured at fair value as of:
June 30, 2026 ($ in millions)Aggregate
Fair Value		Aggregate Unpaid
Principal Balance
Residential mortgage loans measured at fair value$797 796 
Past due loans of 30-89 days1 1 
Past due loans of 90 days or more1 1 
Nonaccrual loans5 5 
Commercial mortgage loans measured at fair value3 3 
December 31, 2025
Residential mortgage loans measured at fair value$764 758 
Past due loans of 30-89 days2 2 
Nonaccrual loans4 4 

Fair Value of Certain Financial Instruments
The following tables summarize the carrying amounts and estimated fair values for certain financial instruments, excluding financial instruments measured at fair value on a recurring basis:
Net Carrying
Amount		Fair Value Measurements UsingTotal
Fair Value
As of June 30, 2026 ($ in millions)Level 1Level 2Level 3
Financial assets:
Cash and due from banks
$4,374 4,374 — — 4,374 
Other short-term investments19,350 19,350 — — 19,350 
Other securities1,260 — 1,260 — 1,260 
Held-to-maturity securities18,404 3,383 14,873 2 18,258 
Loans and leases held for sale168 — — 168 168 
Portfolio loans and leases:
Commercial loans and leases123,092 — — 124,975 124,975 
Consumer and residential mortgage loans52,416 — — 52,018 52,018 
Total portfolio loans and leases, net$175,508 — — 176,993 176,993 
Financial liabilities:
Deposits$234,141 — 234,209 — 234,209 
Short-term borrowings4,633 146 4,488 — 4,634 
Long-term debt17,691 13,627 4,282 — 17,909 
Net Carrying
Amount		Fair Value Measurements UsingTotal
Fair Value
As of December 31, 2025 ($ in millions)Level 1Level 2Level 3
Financial assets:
Cash and due from banks$3,499 3,499 — — 3,499 
Other short-term investments18,876 18,876 — — 18,876 
Other securities674 — 674 — 674 
Held-to-maturity securities11,368 2,457 8,945 2 11,404 
Loans and leases held for sale75 — — 75 75 
Portfolio loans and leases:
Commercial loans and leases72,376 — — 73,628 73,628 
Consumer and residential mortgage loans47,916 — — 47,724 47,724 
Total portfolio loans and leases, net$120,292 — — 121,352 121,352 
Financial liabilities:
Deposits$171,819 — 171,899 — 171,899 
Short-term borrowings926 226 700 — 926 
Long-term debt13,579 5,067 8,938 — 14,005