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FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Refer to Note 25, "Fair Value Measurements" to the Consolidated Financial Statements included in our 2025 Annual Report on Form 10-K filed with the SEC on February 24, 2026 for a description of additional valuation methodologies for assets and liabilities measured at fair value on a recurring and non-recurring basis.
The following table presents the balances of assets and liabilities measured at fair value on a recurring basis:
TABLE 19.1
(in millions)Level 1Level 2Level 3Total
June 30, 2026
Assets Measured at Fair Value
Debt securities available for sale
U.S. Treasury$377 $— $— $377 
U.S. government agencies— 29 — 29 
U.S. GSE— 264 — 264 
Residential MBS:
Agency MBS— 758 — 758 
Agency CMO— 536 — 536 
Agency commercial MBS— 1,703 — 1,703 
States of the U.S. and political subdivisions (municipals)— 10 — 10 
Other debt securities— 81 — 81 
Total debt securities available for sale377 3,381 — 3,758 
Loans held for sale— 282 — 282 
Loans receivable— — 96 96 
Derivative financial instruments
Trading— 83 — 83 
Not for trading— 1 3 4 
Total derivative financial instruments— 84 3 87 
Total assets measured at fair value on a recurring basis$377 $3,747 $99 $4,223 
Liabilities Measured at Fair Value
Derivative financial instruments
Trading$— $190 $— $190 
Not for trading— 6 — 6 
Total derivative financial instruments— 196 — 196 
Total liabilities measured at fair value on a recurring basis$— $196 $— $196 
(in millions)Level 1Level 2Level 3Total
December 31, 2025
Assets Measured at Fair Value
Debt securities available for sale
U.S. Treasury$356 $— $— $356 
U.S. government agencies— 35 — 35 
U.S. GSE— 266 — 266 
Residential MBS:
Agency MBS— 800 — 800 
Agency CMO— 601 — 601 
Agency commercial MBS— 1,599 — 1,599 
States of the U.S. and political subdivisions (municipals)— 19 — 19 
Other debt securities— 51 — 51 
Total debt securities available for sale356 3,371 — 3,727 
Loans held for sale— 514 — 514 
Loans receivable— — 85 85 
Derivative financial instruments
Trading— 102 — 102 
Not for trading— 13 7 20 
Total derivative financial instruments— 115 7 122 
Total assets measured at fair value on a recurring basis$356 $4,000 $92 $4,448 
Liabilities Measured at Fair Value
Derivative financial instruments
Trading$— $207 $— $207 
Not for trading— 1 — 1 
Total derivative financial instruments— 208 — 208 
Total liabilities measured at fair value on a recurring basis$— $208 $— $208 
The following table presents additional information about assets measured at fair value on a recurring basis and for which we have utilized Level 3 inputs to determine fair value:
TABLE 19.2
(in millions)Loans ReceivableInterest
Rate Lock
Commitments		Total
Six Months Ended June 30, 2026
Balance at beginning of period$85 $7 $92 
Purchases, issuances, sales and settlements:
Issuances— 3 3 
Settlements— (7)(7)
Transfers into Level 311 — 11 
Balance at end of period$96 $3 $99 
Year Ended December 31, 2025
Balance at beginning of period$53 $1 $54 
Purchases, issuances, sales and settlements:
Issuances— 7 7 
Settlements— (1)(1)
Transfers into Level 332 — 32 
Balance at end of period$85 $7 $92 
We review fair value hierarchy classifications on a quarterly basis. Changes in the observability of the valuation attributes may result in reclassification of certain financial assets or liabilities. Such reclassifications are reported as transfers in/out of Level 3 at fair value at the beginning of the period in which the changes occur. During the first six months of 2026, $11.4 million was transferred to loans receivable measured using the fair value option at Level 3, compared to $13.0 million during the first six months of 2025.
From time to time, we measure certain assets at fair value on a non-recurring basis. These adjustments to fair value usually result from the application of the lower of cost or fair value accounting or write-downs of individual assets. Valuation methodologies used to measure these fair value adjustments were described in Note 25, "Fair Value Measurements" to the Consolidated Financial Statements included in our 2025 Annual Report on Form 10-K. For assets measured at fair value on a non-recurring basis still held at the Balance Sheet date, the following table provides the hierarchy level and the fair value of the related assets or portfolios:
TABLE 19.3
(in millions)Level 1Level 2Level 3Total
June 30, 2026
Collateral dependent loans$— $— $91 $91 
Other assets - SBA servicing asset— — 2 2 
December 31, 2025
Collateral dependent loans$— $— $126 $126 
Other assets - MSRs— — 2 2 
Other assets - SBA servicing asset— — 2 2 
Other real estate owned— — 1 1 
The fair value amounts for collateral dependent loans and OREO in the table above were estimated at a date during the six months or twelve months ended June 30, 2026 and December 31, 2025, respectively. Consequently, the fair value information presented is not necessarily as of the period’s end. Collateral dependent loans measured or re-measured at fair value on a non-recurring basis during the six months ended June 30, 2026 had a carrying amount of $91.1 million, which includes an allocated
ACL of $27.9 million. The ACL includes a provision applicable to the current period fair value measurements of $20.7 million, which was included in provision for credit losses for the six months ended June 30, 2026.
Fair Value of Financial Instruments
Refer to Note 25, "Fair Value Measurements" to the Consolidated Financial Statements included in our 2025 Annual Report on Form 10-K filed with the SEC on February 24, 2026 for a description of methods and assumptions that were used to estimate the fair value of each financial instrument.
The fair values of our financial instruments are as follows:
TABLE 19.4
Fair Value Measurements
(in millions)Carrying
Amount		Fair
 Value		Level 1Level 2Level 3
June 30, 2026
Financial Assets
Cash and cash equivalents$2,375 $2,375 $2,375 $— $— 
Debt securities available for sale3,758 3,758 377 3,381 — 
Debt securities held to maturity4,251 4,049 1 4,048 — 
Net loans and leases, including loans held for sale35,612 35,208 — 282 34,926 
Loan servicing rights77 97 — — 97 
Derivative assets87 87 — 84 3 
Accrued interest receivable143 143 143 — — 
Financial Liabilities
Deposits38,679 38,640 31,403 7,237 — 
Short-term borrowings2,681 2,679 2,679 — — 
Long-term borrowings2,002 2,010 — 1,198 812 
Derivative liabilities196 196 — 196 — 
Accrued interest payable47 47 47 — — 
December 31, 2025
Financial Assets
Cash and cash equivalents$2,498 $2,498 $2,498 $— $— 
Debt securities available for sale3,727 3,727 356 3,371 — 
Debt securities held to maturity4,117 3,941 — 3,941 — 
Net loans and leases, including loans held for sale34,853 34,320 — 514 33,806 
Loan servicing rights75 90 — — 90 
Derivative assets122 122 — 115 7 
Accrued interest receivable163 163 163 — — 
Financial Liabilities
Deposits38,759 38,736 31,451 7,285 — 
Short-term borrowings2,017 2,018 2,018 — — 
Long-term borrowings1,901 1,920 — 1,103 817 
Derivative liabilities208 208 — 208 — 
Accrued interest payable50 50 50 — —