Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2026

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 1		Level 2	Level 3	Total 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 securities	659		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 securities	659		1,194	—	1,853
Equity securities	473		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 contracts	3		609	7	619
Foreign exchange contracts	—		503	—	503
Commodity contracts	130		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 contracts	130		1,227	—	1,357
Derivative liabilities(d)	133		2,454	79	2,666
Short positions:
U.S. Treasury and federal agencies securities	129		—	—	129
Asset-backed securities and other debt securities	—		316	—	316
Equity securities	60		—	—	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 1		Level 2	Level 3	Total 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 securities	482		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 securities	482		575	—	1,057
Equity securities	436		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 contracts	1		457	5	463
Foreign exchange contracts	—		659	—	659
Commodity contracts	224		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 contracts	35		703	—	738
Derivative liabilities(d)	38		1,868	128	2,034
Short positions:
U.S. Treasury and federal agencies securities	82		3	—	85
Asset-backed securities and other debt securities	—		218	—	218
Equity securities	48		—	—	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.

Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs

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.

(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.

(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 earnings	3		(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.

(d)Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment.

Quantitative Information About Significant Unobservable Level 3 Fair Value Measurement Input, Recurring

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 Instrument	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range of Inputs			Weighted-Average
Residential mortgage loans	$	102	Loss rate model	Interest rate risk factor	(52.0)	-	6.7%		(10.5)	%	(a)
				Credit risk factor	—	-	0.7%		0.1	%	(a)
Residential mortgage servicing rights	1,582		DCF	Prepayment speed	—	-	90.3%	(Fixed)	6.8	%	(b)
								(Adjustable)	21.1	%	(b)
				OAS (bps)	335	-	1,827	(Fixed)	376		(b)
								(Adjustable)	702		(b)
IRLCs, net	7		DCF	Loan closing rates	0.7	-	99.1%		83.9	%	(c)
Swap associated with the sale of Visa, Inc. Class B Shares	(70)		DCF	Timing of the resolution of the Covered Litigation	Q1 2028	-	Q2 2029	Q3 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 Instrument	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range of Inputs			Weighted-Average
Residential mortgage loans	$	107	Loss rate model	Interest rate risk factor	(52.0)	-	6.1 %		(11.4)	%	(a)
				Credit risk factor	—	-	0.8 %		0.1	%	(a)
Residential mortgage servicing rights	1,629		DCF	Prepayment speed	—	-	100.0 %	(Fixed)	6.5	%	(b)
								(Adjustable)	17.2	%	(b)
				OAS (bps)	335	-	1,821	(Fixed)	433		(b)
								(Adjustable)	723		(b)
IRLCs, net	7		DCF	Loan closing rates	18.6	-	96.0 %		82.2	%	(c)
Swap associated with the sale of Visa, Inc. Class B Shares	(145)		DCF	Timing of the resolution of the Covered Litigation	Q2 2027	-	Q2 2028	Q4 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

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 Using					Total (Losses) Gains
As of June 30, 2026 ($ in millions)	Level 1		Level 2	Level 3	Total	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 Using					Total (Losses) Gains
As of June 30, 2025 ($ in millions)	Level 1		Level 2	Level 3	Total	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)

Quantitative Information About Significant Unobservable Level 3 Fair Value Measurement Input, Nonrecurring

As of June 30, 2026 ($ in millions)

Financial Instrument

Fair Value

Valuation Technique

Significant Unobservable Inputs

Ranges of
Inputs

Weighted-Average

Commercial loans and leases

195

Appraised value

Collateral value

Consumer and residential mortgage loans

207

Appraised value

Collateral value

OREO

Appraised value

Bank premises and equipment

Appraised value

Private equity investments

—

Comparable company analysis

Market comparable transactions

As of June 30, 2025 ($ in millions)

Financial Instrument

Fair Value

Valuation Technique

Significant Unobservable Inputs

Ranges of
Inputs

Weighted-Average

Commercial loans and leases

222

Appraised value

Collateral value

Consumer and residential mortgage loans

194

Appraised value

Collateral value

OREO

Appraised value

Difference Between the Fair Value and the Unpaid Principal Balance for Loans

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 days	1		1
Past due loans of 90 days or more	1		1
Nonaccrual loans	5		5
Commercial mortgage loans measured at fair value	3		3
December 31, 2025
Residential mortgage loans measured at fair value	$	764	758
Past due loans of 30-89 days	2		2

Nonaccrual loans	4		4

Carrying Amounts and Estimated Fair Values for 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 Using			Total Fair Value
As of June 30, 2026 ($ in millions)			Level 1	Level 2	Level 3
Financial assets:
Cash and due from banks	$	4,374	4,374	—	—	4,374
Other short-term investments	19,350		19,350	—	—	19,350
Other securities	1,260		—	1,260	—	1,260
Held-to-maturity securities	18,404		3,383	14,873	2	18,258
Loans and leases held for sale	168		—	—	168	168
Portfolio loans and leases:
Commercial loans and leases	123,092		—	—	124,975	124,975
Consumer and residential mortgage loans	52,416		—	—	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 borrowings	4,633		146	4,488	—	4,634
Long-term debt	17,691		13,627	4,282	—	17,909


	Net Carrying Amount		Fair Value Measurements Using			Total Fair Value
As of December 31, 2025 ($ in millions)			Level 1	Level 2	Level 3
Financial assets:
Cash and due from banks	$	3,499	3,499	—	—	3,499
Other short-term investments	18,876		18,876	—	—	18,876
Other securities	674		—	674	—	674
Held-to-maturity securities	11,368		2,457	8,945	2	11,404
Loans and leases held for sale	75		—	—	75	75
Portfolio loans and leases:
Commercial loans and leases	72,376		—	—	73,628	73,628
Consumer and residential mortgage loans	47,916		—	—	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 borrowings	926		226	700	—	926
Long-term debt	13,579		5,067	8,938	—	14,005

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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