FAIR VALUE (Tables)

9 Months Ended

Sep. 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)	September 30, 2026
	Level 1		Level 2		Level 3		Netting		Total
ASSETS
Trading securities	$	—	$	191	$	—	$	—	$	191
Available-for-sale securities:
U.S. Treasury, agencies, and corporations	2,065		5,921		—		—		7,986
Municipal securities	—		775		—		—		775
Other debt securities	—		25		—		—		25
Total available-for-sale	2,065		6,721		—		—		8,786
Loans held for sale	—		34		—		—		34
Other noninterest-bearing investments:
Bank-owned life insurance	—		582		—		—		582
Private equity investments 1	3		—		212		—		215
Other assets:
Agriculture loan servicing	—		—		18		—		18
Deferred compensation plan assets	172		—		—		—		172
Derivatives	—		771		—		(601)		170
Total assets	$	2,240	$	8,299	$	230	$	(601)	$	10,168
LIABILITIES
Fed funds and other short-term borrowings:
Securities sold, not yet purchased	$	18	$	—	$	—	$	—	18
Other liabilities:
Derivatives	—		783		—		(209)		574
Total liabilities	$	18	$	783	$	—	$	(209)	$	592


(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 September 30, 2026				Three Months Ended September 30, 2025				Nine Months Ended September 30, 2026				Nine Months Ended September 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	$	210	$	18	$	116	$	20	$	157	$	18	$	105	$	20
Unrealized securities gains, net	(5)		—		12		—		40		—		36		—
Other noninterest income	—		—		—		(1)		—		—		—		(1)
Purchases	7		—		7		—		16		—		12		—
Cost of investments sold	—		—		—		—		(1)		—		(6)		—

Transfers out	—		—		—		—		—		—		(12)		—
Balance at end of period	$	212	$	18	$	135	$	19	$	212	$	18	$	135	$	19

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				Nine Months Ended
	September 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025


Securities gains (losses), net	$	—	$	—	$	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:


	September 30, 2026					December 31, 2025
(In millions)	Carrying value		Fair value		Level	Carrying value		Fair value		Level
Financial assets:
Held-to-maturity investment securities	$	8,268	$	7,856	2	$	8,867	$	8,940	2
Loans and leases (including loans held for sale), net of allowance	61,876		61,429		3	60,423		59,383		3
Financial liabilities:
Time deposits	9,258		9,147		2	9,907		9,839		2


Long-term debt	2,416		2,440		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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