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FAIR VALUE MEASUREMENTS
 9 Months Ended
Sep. 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
September 30, 2026
Assets Measured at Fair Value
Debt securities available for sale
U.S. Treasury$397 $— $— $397 
U.S. government agencies— 27 — 27 
U.S. GSE— 280 — 280 
Residential MBS:
Agency MBS— 710 — 710 
Agency CMO— 494 — 494 
Agency commercial MBS— 1,750 — 1,750 
States of the U.S. and political subdivisions (municipals)— 10 — 10 
Other debt securities— 79 — 79 
Total debt securities available for sale397 3,350 — 3,747 
Loans held for sale— 228 — 228 
Loans receivable— — 101 101 
Derivative financial instruments
Trading— 149 — 149 
Not for trading— 10 — 10 
Total derivative financial instruments— 159 — 159 
Total assets measured at fair value on a recurring basis$397 $3,737 $101 $4,235 
Liabilities Measured at Fair Value
Derivative financial instruments
Trading$— $279 $— $279 
Not for trading— 24 6 30 
Total derivative financial instruments— 303 6 309 
Total liabilities measured at fair value on a recurring basis$— $303 $6 $309 
(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
Nine Months Ended September 30, 2026
Balance at beginning of period$85 $7 $92 
Purchases, issuances, sales and settlements:
Issuances— — — 
Settlements— (7)(7)
Transfers into Level 316 — 16 
Balance at end of period$101 $— $101 
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 nine months of 2026, $16.8 million was transferred to loans receivable measured using the fair value option at Level 3, compared to $24.6 million during the first nine months of 2025.
From time to time, we measure certain assets at fair value on a non-recurring basis. These adjustments to fair value usually result from the application of the lower of cost or fair value accounting or write-downs of individual assets. Valuation methodologies used to measure these fair value adjustments were described in Note 25, "Fair Value Measurements" to the Consolidated Financial Statements included in our 2025 Annual Report on Form 10-K. For assets measured at fair value on a non-recurring basis still held at the Balance Sheet date, the following table provides the hierarchy level and the fair value of the related assets or portfolios:
TABLE 19.3
(in millions)Level 1Level 2Level 3Total
September 30, 2026
Collateral dependent loans$— $— $75 $75 
Other assets - MSRs— — 3 3 
Other assets - SBA servicing asset— — 2 2 
December 31, 2025
Collateral dependent loans$— $— $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 nine months or twelve months ended September 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 nine months ended September 30, 2026 had a carrying amount of $75.4 million, which includes an allocated ACL of $21.3 million. The ACL includes a provision applicable to the current period fair value measurements of $18.3 million, which was included in provision for credit losses for the nine months ended September 30, 2026.
MSRs measured at fair value on a non-recurring basis had a carrying value of $3.7 million, and a valuation allowance of $0.4 million, as of September 30, 2026. The valuation allowance includes provision expense of $0.3 million in earnings for the nine months ended September 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
September 30, 2026
Financial Assets
Cash and cash equivalents$2,526 $2,526 $2,526 $— $— 
Debt securities available for sale3,747 3,747 397 3,350 — 
Debt securities held to maturity4,404 4,021 1 4,020 — 
Net loans and leases, including loans held for sale36,318 35,627 — 228 35,399 
Loan servicing rights79 118 — — 118 
Derivative assets159 159 — 159 — 
Accrued interest receivable172 172 172 — — 
Financial Liabilities
Deposits39,550 39,492 32,395 7,097 — 
Short-term borrowings3,001 2,996 2,996 — — 
Long-term borrowings1,803 1,780 — 992 788 
Derivative liabilities309 309 — 303 6 
Accrued interest payable55 55 55 — — 
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 — —