FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2026

Schedule of Assets and Liabilities Measured at Fair Value by Class on a Recurring Basis

The following schedule presents assets and liabilities measured at fair value on a recurring basis:


(In millions)	June 30, 2026
	Level 1		Level 2		Level 3		Netting		Total
ASSETS
Trading securities	$	—	$	319	$	—	$	—	$	319
Available-for-sale securities:
U.S. Treasury, agencies, and corporations	1,978		6,385		—		—		8,363
Municipal securities	—		851		—		—		851
Other debt securities	—		25		—		—		25
Total available-for-sale	1,978		7,261		—		—		9,239
Loans held for sale	—		51		—		—		51
Other noninterest-bearing investments:
Bank-owned life insurance	—		579		—		—		579
Private equity investments 1	3		—		210		—		213
Other assets:
Agriculture loan servicing	—		—		18		—		18
Deferred compensation plan assets	173		—		—		—		173
Derivatives	—		453		—		(372)		81
Total assets	$	2,154	$	8,663	$	228	$	(372)	$	10,673
LIABILITIES
Fed funds and other short-term borrowings:
Securities sold, not yet purchased	$	85	$	—	$	—	$	—	$	85
Other liabilities:
Derivatives	—		369		—		(102)		267
Total liabilities	$	85	$	369	$	—	$	(102)	$	352


(In millions)	December 31, 2025
	Level 1		Level 2		Level 3		Netting		Total
ASSETS
Trading securities	$	—	$	64	$	—	$	—	$	64
Available-for-sale securities:
U.S. Treasury, agencies, and corporations	1,411		6,862		—		—		8,273
Municipal securities	—		909		—		—		909
Other debt securities	—		25		—		—		25
Total available-for-sale	1,411		7,796		—		—		9,207
Loans held for sale	—		71		—		—		71
Other noninterest-bearing investments:
Bank-owned life insurance	—		573		—		—		573
Private equity investments 1	6		—		157		—		163
Other assets:
Agriculture loan servicing	—		—		18		—		18
Deferred compensation plan assets	154		—		—		—		154
Derivatives	—		360		—		(283)		77
Total assets	$	1,571	$	8,864	$	175	$	(283)	$	10,327
LIABILITIES
Fed funds and other short-term borrowings:
Securities sold, not yet purchased	$	135	$	—	$	—	$	—	$	135
Other liabilities:
Derivatives	—		260		—		(68)		192
Total liabilities	$	135	$	260	$	—	$	(68)	$	327

1 The Level 1 private equity investments (“PEIs”) generally relate to the portion of our Small Business Investment Company (“SBIC”) investments and other similar investments that are publicly traded.

Schedule of Assets and Liabilities Measured at Fair Value by Class on a Recurring Basis Using Level 3 Inputs

The following schedule presents a roll-forward of assets and liabilities that are measured at fair value on a recurring basis using Level 3 inputs:


	Level 3 Instruments
	Three Months Ended June 30, 2026				Three Months Ended June 30, 2025				Six Months Ended June 30, 2026				Six Months Ended June 30, 2025
(In millions)	Private equity investments		Ag loan servicing		Private equity investments		Ag loan servicing		Private equity investments		Ag loan servicing		Private equity investments		Ag loan servicing

Balance at beginning of period	$	159	$	20	$	109	$	19	$	157	$	18	$	105	$	20
Unrealized securities gains, net	45		—		20		—		45		—		24		—
Other noninterest income	—		(2)		—		1		—		—		—		—
Purchases	7		—		4		—		9		—		5		—
Cost of investments sold	(1)		—		(5)		—		(1)		—		(6)		—

Transfers out	—		—		(12)		—		—		—		(12)		—
Balance at end of period	$	210	$	18	$	116	$	20	$	210	$	18	$	116	$	20

Schedule of Realized Gain (Loss)

The roll-forward of Level 3 instruments includes the following realized gains and losses recognized in “Securities gains (losses), net” on the consolidated statement of income for the periods presented:


(In millions)	Three Months Ended				Six Months Ended
	June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2025


Securities gains (losses), net	$	4	$	(5)	$	4	$	(5)

Schedule of Carrying Values and Estimated Fair Values

The following schedule presents the carrying values and estimated fair values of certain financial instruments:


	June 30, 2026					December 31, 2025
(In millions)	Carrying value		Fair value		Level	Carrying value		Fair value		Level
Financial assets:
Held-to-maturity investment securities	$	8,477	$	8,440	2	$	8,867	$	8,940	2
Loans and leases (including loans held for sale), net of allowance	61,896		61,180		3	60,423		59,383		3
Financial liabilities:
Time deposits	9,718		9,617		2	9,907		9,839		2


Long-term debt	1,956		1,990		2	1,472		1,506		2

- 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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