v3.26.1
Fair Values of Assets and Liabilities (Tables)
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Valuation Assumption Ranges for MSRs
The following table shows the significant valuation assumption ranges for MSRs at June 30, 2026:
Minimum Maximum
Weighted-
Average(a)
Expected prepayment6 %18 %9 %
Option adjusted spread4 11 6 
(a)Determined based on the relative fair value of the related mortgage loans serviced.
Valuation Assumption Ranges for Derivative Commitments
The following table shows the significant valuation assumption ranges for the Company’s derivative commitments to purchase and originate mortgage loans at June 30, 2026:
Minimum Maximum
Weighted-
Average(a)
Expected loan close rate1 %100 %86 %
Inherent MSR value (basis points per loan)58 212 122 
(a)Determined based on the relative fair value of the related mortgage loans.
Assets and Liabilities Measured at Fair Value on Recurring Basis
The following table summarizes the balances of assets and liabilities measured at fair value on a recurring basis:
(Dollars in Millions)Level 1Level 2Level 3Netting Total
June 30, 2026
Available-for-sale securities
U.S. Treasury and agencies$24,099 $4,656 $— $— $28,755 
Mortgage-backed securities
Residential agency— 39,867 — — 39,867 
Commercial
Agency— 7,422 — — 7,422 
Non-agency— 7 — — 7 
Asset-backed securities— 5,535 — — 5,535 
Obligations of state and political subdivisions— 7,361 — — 7,361 
Other— 138 — — 138 
Total available-for-sale24,099 64,986 — — 89,085 
Mortgage loans held for sale— 2,645 — — 2,645 
Mortgage servicing rights— — 3,177 — 3,177 
Derivative assets342 4,677 2,081 (3,212)3,888 
Other assets695 2,864 — — 3,559 
Total$25,136 $75,172 $5,258 $(3,212)$102,354 
Time deposits$— $13 $— $— $13 
Long-term debt— 1,904 — — 1,904 
Derivative liabilities114 5,188 2,332 (3,946)3,688 
Short-term borrowings and other liabilities(a)
729 1,778 — — 2,507 
Total$843 $8,883 $2,332 $(3,946)$8,112 
December 31, 2025
Available-for-sale securities
U.S. Treasury and agencies$24,038 $4,732 $— $— $28,770 
Mortgage-backed securities
Residential agency— 38,010 — — 38,010 
Commercial
Agency— 7,742 — — 7,742 
Non-agency— 7 — — 7 
Asset-backed securities— 6,527 — — 6,527 
Obligations of state and political subdivisions— 9,514 — — 9,514 
Other— 268 — — 268 
Total available-for-sale24,038 66,800 — — 90,838 
Mortgage loans held for sale— 2,353 — — 2,353 
Mortgage servicing rights— — 3,159 — 3,159 
Derivative assets147 4,735 1,970 (3,151)3,701 
Other assets524 2,261 — — 2,785 
Total$24,709 $76,149 $5,129 $(3,151)$102,836 
Time deposits$— $718 $— $— $718 
Long-term debt— 1,414 — — 1,414 
Derivative liabilities72 4,538 2,182 (3,392)3,400 
Short-term borrowings and other liabilities(a)
717 1,796 — — 2,513 
Total$789 $8,466 $2,182 $(3,392)$8,045 
Note: Excluded from the table above are equity investments without readily determinable fair values. The Company has elected to carry these investments at historical cost, adjusted for impairment and any changes resulting from observable price changes for identical or similar investments of the issuer. The aggregate carrying amount of these equity investments was $210 million and $203 million at June 30, 2026 and December 31, 2025, respectively, and reflect no impairment or observable price change adjustment at both June 30, 2026 and December 31, 2025. The Company did not record any adjustments for observable price changes during the first six months of 2026 and 2025.
(a)Primarily represents the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance.
Changes in Fair Value for Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)
The following table presents the changes in fair value for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):
Three Months Ended June 30
(Dollars in Millions)		Beginning of Period BalanceNet Gains (Losses) Included in Net IncomePurchasesSalesIssuancesSettlementsEnd of Period BalanceNet Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period
2026
Mortgage servicing rights$3,152 $(58)
(a)
$— $(2)$85 
(c)
$— $3,177 $(58)
(a)
Net derivative assets and liabilities490 (1,594)
(b)
629 (7)— 231 (251)(622)
(d)
2025
Mortgage servicing rights$3,312 $(71)
(a)
$— $— $64 
(c)
$— $3,305 $(71)
(a)
Net derivative assets and liabilities(727)10 
(e)
52 — — 558 (107)463 
(f)
Six Months Ended June 30
(Dollars in Millions)		Beginning of Period BalanceNet Gains (Losses) Included in Net IncomePurchasesSalesIssuancesSettlementsEnd of Period BalanceNet Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period
2026
Mortgage servicing rights$3,159 $(129)
(a)
$— $(4)$151 
(c)
$— $3,177 $(129)
(a)
Net derivative assets and liabilities(212)(1,751)
(g)
1,029 (7)— 690 (251)(136)
(h)
2025
Mortgage servicing rights$3,369 $(188)
(a)
$— $1 $123 
(c)
$— $3,305 $(188)
(a)
Net derivative assets and liabilities(1,800)(181)
(i)
721 (2)1 1,154 (107)1,351 
(j)
(a)Included in mortgage banking revenue.
(b)Approximately $51 million, $(1.6) billion and $(13) million included in mortgage banking revenue, capital markets revenue and other noninterest income, respectively.
(c)Represents MSRs capitalized during the period.
(d)Approximately $16 million, $(625) million and $(13) million included in mortgage banking revenue, capital markets revenue and other noninterest income, respectively.
(e)Approximately $53 million, $39 million and $(82) million included in mortgage banking revenue, capital markets revenue and other noninterest income, respectively.
(f)Approximately $21 million, $526 million and $(82) million included in mortgage banking revenue, capital markets revenue and other noninterest income, respectively.
(g)Approximately $95 million,$(1.8) billion and $(31) million included in mortgage banking revenue, capital markets revenue and other noninterest income, respectively.
(h)Approximately $16 million, $(121) million and $(31) million included in mortgage banking revenue, capital markets revenue and other noninterest income, respectively.
(i)Approximately $104 million, $(202) million and $(83) million included in mortgage banking revenue, capital markets revenue and other noninterest income, respectively.
(j)Approximately $21 million, $1.4 billion and $(83) million included in mortgage banking revenue, capital markets revenue and other noninterest income, respectively.
Changes in Fair Value for Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)
The following table presents the changes in fair value for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):
Three Months Ended June 30
(Dollars in Millions)		Beginning of Period BalanceNet Gains (Losses) Included in Net IncomePurchasesSalesIssuancesSettlementsEnd of Period BalanceNet Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period
2026
Mortgage servicing rights$3,152 $(58)
(a)
$— $(2)$85 
(c)
$— $3,177 $(58)
(a)
Net derivative assets and liabilities490 (1,594)
(b)
629 (7)— 231 (251)(622)
(d)
2025
Mortgage servicing rights$3,312 $(71)
(a)
$— $— $64 
(c)
$— $3,305 $(71)
(a)
Net derivative assets and liabilities(727)10 
(e)
52 — — 558 (107)463 
(f)
Six Months Ended June 30
(Dollars in Millions)		Beginning of Period BalanceNet Gains (Losses) Included in Net IncomePurchasesSalesIssuancesSettlementsEnd of Period BalanceNet Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period
2026
Mortgage servicing rights$3,159 $(129)
(a)
$— $(4)$151 
(c)
$— $3,177 $(129)
(a)
Net derivative assets and liabilities(212)(1,751)
(g)
1,029 (7)— 690 (251)(136)
(h)
2025
Mortgage servicing rights$3,369 $(188)
(a)
$— $1 $123 
(c)
$— $3,305 $(188)
(a)
Net derivative assets and liabilities(1,800)(181)
(i)
721 (2)1 1,154 (107)1,351 
(j)
(a)Included in mortgage banking revenue.
(b)Approximately $51 million, $(1.6) billion and $(13) million included in mortgage banking revenue, capital markets revenue and other noninterest income, respectively.
(c)Represents MSRs capitalized during the period.
(d)Approximately $16 million, $(625) million and $(13) million included in mortgage banking revenue, capital markets revenue and other noninterest income, respectively.
(e)Approximately $53 million, $39 million and $(82) million included in mortgage banking revenue, capital markets revenue and other noninterest income, respectively.
(f)Approximately $21 million, $526 million and $(82) million included in mortgage banking revenue, capital markets revenue and other noninterest income, respectively.
(g)Approximately $95 million,$(1.8) billion and $(31) million included in mortgage banking revenue, capital markets revenue and other noninterest income, respectively.
(h)Approximately $16 million, $(121) million and $(31) million included in mortgage banking revenue, capital markets revenue and other noninterest income, respectively.
(i)Approximately $104 million, $(202) million and $(83) million included in mortgage banking revenue, capital markets revenue and other noninterest income, respectively.
(j)Approximately $21 million, $1.4 billion and $(83) million included in mortgage banking revenue, capital markets revenue and other noninterest income, respectively.
Assets Measured at Fair Value on Nonrecurring Basis
The following table summarizes the balances as of the measurement date of assets measured at fair value on a nonrecurring basis, and still held as of the reporting date:
June 30, 2026December 31, 2025
(Dollars in Millions)Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Loans(a)
$— $— $144 $144 $— $— $763 $763 
Other assets(b)
— — 18 18 — — 51 51 
(a)Represents the carrying value of loans for which adjustments were based on the fair value of the collateral, excluding loans fully charged-off.
(b)Primarily represents the fair value of foreclosed properties that were measured at fair value based on an appraisal or broker price opinion of the collateral subsequent to their initial acquisition.
Losses Recognized Related to Nonrecurring Fair Value Measurements
The following table summarizes losses recognized related to nonrecurring fair value measurements of individual assets or portfolios:
Three Months Ended June 30Six Months Ended June 30
(Dollars in Millions)2026202520262025
Loans(a)
$39 $99 $142 $198 
Other assets(b)
1 1 2 2 
(a)Represents write-downs of loans which were based on the fair value of the collateral, excluding loans fully charged-off.
(b)Primarily represents related losses of foreclosed properties that were measured at fair value subsequent to their initial acquisition.
Fair Value Option
The following table summarizes the differences between the aggregate fair value carrying amount of the assets and liabilities for which the fair value option has been elected and the aggregate remaining contractual principal balance outstanding:
June 30, 2026December 31, 2025
(Dollars in Millions)Fair Value Carrying AmountContractual Principal OutstandingCarrying Amount Over (Under) Contractual Principal OutstandingFair Value Carrying AmountContractual Principal OutstandingCarrying Amount Over (Under) Contractual Principal Outstanding
Total loans(a)
$2,645 $2,625 $20 $2,353 $2,325 $28 
Time deposits13 13 — 718 718 — 
Long-term debt1,904 1,948 (44)1,414 1,419 (5)
(a)Includes nonaccrual loans of $1 million carried at fair value with contractual principal outstanding of $1 million at June 30, 2026 and $1 million carried at fair value with contractual principal outstanding of $1 million at December 31, 2025. Includes loans 90 days or more past due of $2 million carried at fair value with contractual principal outstanding of $2 million at June 30, 2026 and $5 million carried at fair value with contractual principal outstanding of $5 million at December 31, 2025.
Estimated Fair Values of Financial Instruments
The estimated fair values of the Company’s financial instruments are shown in the table below:
June 30, 2026December 31, 2025
Carrying AmountFair ValueCarrying AmountFair Value
(Dollars in Millions)Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Financial Assets
Cash and due from banks$66,491 $66,491 $— $— $66,491 $46,890 $46,890 $— $— $46,890 
Federal funds sold and securities purchased under resale agreements5,742 — 5,742 — 5,742 12,359 — 12,359 — 12,359 
Investment securities held-to-maturity74,085 643 63,979 — 64,622 76,170 644 66,435 — 67,079 
Loans held for sale(a)
393 — — 393 393 185 — — 185 185 
Loans, net of allowance for losses402,655 — — 400,044 400,044 383,730 — — 383,323 383,323 
Other(b)
2,634 — 2,187 447 2,634 2,074 — 1,641 433 2,074 
Financial Liabilities
Time deposits(c)
46,494 — 46,497 — 46,497 47,314 — 47,391 — 47,391 
Short-term borrowings(d)
34,830 — 34,671 — 34,671 14,649 — 14,490 — 14,490 
Long-term debt(e)
56,767 — 56,114 — 56,114 59,350 — 59,149 — 59,149 
Other(f)
5,325 — 1,411 3,914 5,325 4,940 — 1,419 3,521 4,940 
(a)Excludes mortgages held for sale for which the fair value option under applicable accounting guidance was elected.
(b)Includes investments in Federal Reserve Bank and FHLB stock and tax-advantaged investments.
(c)Excludes time deposits for which the fair value option under applicable accounting guidance was elected.
(d)Excludes the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance.
(e)Excludes structured long-term notes for which the fair value option under applicable accounting guidance was elected.
(f)Includes operating lease liabilities and liabilities related to tax-advantaged investments.