Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2026

The following table presents estimated fair values of the Company's financial instruments as of the dates presented, whether or not recognized or recorded at fair value on a recurring basis in the Consolidated Balance Sheets:


		September 30, 2026				December 31, 2025
(in millions)	Level	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets:
Cash and cash equivalents	1	$	1,737	$	1,737	$	2,380	$	2,380
Equity and other investment securities (1)	1	85		85		82		82
Investment securities available for sale	1,2	10,935		10,935		11,112		11,112
Investment securities held to maturity	3	17		18		18		19
Loans held for sale	2	45		45		262		262
Loans and leases, net (2)	2,3	46,453		45,151		47,310		47,126
Residential mortgage servicing rights	3	118		118		99		99
Derivatives	2	148		148		84		84
Financial liabilities:
Deposits	2	52,740		52,713		54,211		54,197
Securities sold under agreements to repurchase	2	165		165		207		207
Borrowings	2	3,300		3,300		3,200		3,201
Junior subordinated debentures, at fair value	3	353		353		338		338
Subordinated and junior subordinated debentures, at amortized cost	3	343		345		97		100
Derivatives	1,2	285		285		179		179

(1) Excludes equity investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient of $43 million as of September 30, 2026 and $31 million as of December 31, 2025, respectively.

(2) Loans and leases, net are classified as level 3, with the exception of loans originated as held for sale and transferred into loans held for investment of $67 million and $78 million as of September 30, 2026 and December 31, 2025, respectively, which are classified as level 2.

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present information about the Company's assets and liabilities measured at fair value on a recurring basis as of the periods presented:


(in millions)	September 30, 2026
Description	Total		Level 1		Level 2		Level 3
Financial assets:
Equity and other investment securities
Investments in mutual funds and other securities	$	64	$	64	$	—	$	—
Equity securities held in rabbi trusts	21		21		—		—
Investment securities available for sale
U.S. Treasury and agencies	1,136		226		910		—
Obligations of states and political subdivisions	1,443		—		1,443		—
Mortgage-backed securities and collateralized mortgage obligations	8,356		—		8,356		—
Loans held for sale, at fair value	45		—		45		—
Loans and leases, at fair value	67		—		67		—
Residential mortgage servicing rights, at fair value	118		—		—		118
Derivatives


Interest rate forward sales commitments	2		—		2		—
Interest rate swaps	146		—		146		—

Total assets measured at fair value	$	11,398	$	311	$	10,969	$	118
Financial liabilities:
Junior subordinated debentures, at fair value	$	353	$	—	$	—	$	353
Derivatives

Interest rate futures	5		5		—		—

Interest rate swaps	279		—		279		—
Foreign currency derivatives	1		—		1		—
Total liabilities measured at fair value	$	638	$	5	$	280	$	353


(in millions)	December 31, 2025
Description	Total		Level 1		Level 2		Level 3
Financial assets:
Equity and other investment securities
Investments in mutual funds and other securities	$	63	$	63	$	—	$	—
Equity securities held in rabbi trusts	19		19		—		—
Investment securities available for sale
U.S. Treasury and agencies	1,300		209		1,091		—
Obligations of states and political subdivisions	1,629		—		1,629		—
Mortgage-backed securities and collateralized mortgage obligations	8,183		—		8,183		—
Loans held for sale, at fair value	262		—		262		—
Loans and leases, at fair value	78		—		78		—
Residential mortgage servicing rights, at fair value	99		—		—		99
Derivatives



Interest rate swaps	84		—		84		—

Total assets measured at fair value	$	11,717	$	291	$	11,327	$	99
Financial liabilities:
Junior subordinated debentures, at fair value	$	338	$	—	$	—	$	338
Derivatives



Interest rate swaps	179		—		179		—

Total liabilities measured at fair value	$	517	$	—	$	179	$	338

Fair Value Measurement Inputs and Valuation Techniques

The following table provides a description of the valuation technique, significant unobservable inputs, and qualitative information about the unobservable inputs for the Company's assets and liabilities classified as Level 3 and measured at fair value on a recurring basis as of the dates presented:

Financial Instrument

Fair Value

(in millions)

Valuation Technique

Unobservable Input

Range of Inputs

Weighted Average

September 30, 2026

Assets:

Residential mortgage servicing rights

118

Discounted cash flow

Constant prepayment rate

5.55% - 40.36%

6.31%

Discount rate

9.50% - 16.42%

10.18%

Liabilities:

Junior subordinated debentures

353

Discounted cash flow

Credit spread

0.47% - 3.52%

2.36%

Financial Instrument

Fair Value

(in millions)

Valuation Technique

Unobservable Input

Range of Inputs

Weighted Average

December 31, 2025

Assets:

Residential mortgage servicing rights

Discounted cash flow

Constant prepayment rate

5.76% - 30.21%

8.26%

Discount rate

9.50% - 16.30%

10.20%

Liabilities:

Junior subordinated debentures

338

Discounted cash flow

Credit spread

1.82% - 3.97%

2.86%

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following table provides a reconciliation of assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis for the periods indicated:


	Three Months Ended
	September 30, 2026		September 30, 2025
(in millions)	Residential Mortgage Servicing Rights		Junior Subordinated Debentures, at Fair Value		Residential Mortgage Servicing Rights		Junior Subordinated Debentures, at Fair Value
Beginning balance	$	105	$	(339)	$	103	$	(323)
Change included in earnings	10		6		(3)		(7)
Change in fair values included in comprehensive income/loss	—		(14)		—		(8)
Purchases and issuances	3		—		1		—
Sales and settlements	—		(6)		—		7
Ending balance	$	118	$	(353)	$	101	$	(331)
Change in unrealized gains or losses for the period included in earnings for assets and liabilities held at end of period	$	13	$	6	$	(2)	$	(7)
Change in unrealized gains or losses for the period included in other comprehensive income for assets and liabilities held at end of period	$	—	$	(14)	$	—	$	(8)

	Nine Months Ended
	September 30, 2026		September 30, 2025
	2026		2025
(in millions)	Residential Mortgage Servicing Rights		Junior Subordinated Debentures, at Fair Value		Residential Mortgage Servicing Rights		Junior Subordinated Debentures, at Fair Value
Beginning balance	$	99	$	(338)	$	108	$	(331)
Change included in earnings	11		18		(12)		(20)
Change in fair values included in comprehensive income/loss			(15)		—		—
Purchases and issuances	8		—		5		—
Sales and settlements	—		(18)		—		20
Ending balance	$	118	$	(353)	$	101	$	(331)
Change in unrealized gains or losses for the period included in earnings for assets held at end of period	$	20	$	18	$	(3)	$	(20)
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at end of period	$	—	$	(15)	$	—	$	—

Fair Value Measurements, Nonrecurring

The following tables present information about the Company's assets and liabilities measured at fair value on a nonrecurring basis for which a nonrecurring change in fair value was recorded during the reporting period. The amounts disclosed below represent the fair values at the time the nonrecurring fair value measurements were made, and not necessarily the fair value as of the dates reported upon.


	September 30, 2026

(in millions)	Total		Level 1		Level 2		Level 3
Loans and leases	$	74	$	—	$	—	$	74


	December 31, 2025

(in millions)	Total		Level 1		Level 2		Level 3



Loans and leases	$	48	$	—	$	—	$	48

Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings

The following table presents the losses resulting from nonrecurring fair value adjustments for the periods indicated:


	Three Months Ended				Nine Months Ended
(in millions)	September 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025

Loans and leases	$	33	$	17	$	91	$	72

Fair Value Option, Disclosures

The following table presents the difference between the aggregate fair value and the aggregate unpaid principal balance of loans held for sale and loans held for investment accounted for under the fair value option as of the dates presented:


	September 30, 2026						December 31, 2025
(in millions)	Fair Value		Aggregate Unpaid Principal Balance		Fair Value Less Aggregate Unpaid Principal Balance		Fair Value		Aggregate Unpaid Principal Balance		Fair Value Less Aggregate Unpaid Principal Balance
Loans held for sale	$	45	$	45	$	—	$	142	$	156	$	(14)
Loans held for investment	$	67	$	76	$	(9)	$	78	$	82	$	(4)

- 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.

+ References + Details