FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2026

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

The following tables present the assets and liabilities that are measured at fair value on a recurring and nonrecurring basis by major product category and fair value hierarchy as of the dates indicated:


(in millions)	Level 1		Level 2		Level 3		Balance at September 30, 2026		Level 1		Level 2		Level 3		Balance at December 31, 2025
Recurring:
Financial assets:
U.S. Treasury securities	$	226	$	—	$	—	$	226	$	706	$	—	$	—	$	706
Corporate debt	—		9		—		9		—		—		—		—
ABS	—		2,037		—		2,037		—		945		—		945
Beneficial interest in Structured LLC	—		—		1,013		1,013		—		—		1,097		1,097

MBS	—		6,378		—		6,378		—		4,580		—		4,580
Investment in debt securities AFS (2)	$	226	$	8,424	$	1,013	$	9,663	$	706	$	5,525	$	1,097	$	7,328
Trading securities	2,851		14,870		112		17,833		3,539		11,897		173		15,609
Equity securities	41		—		890		931		—		—		992		992

RICs HFI (3)	—		—		3		3		—		—		5		5
LHFS (1)(4)	—		1,685		—		1,685		—		1,531		—		1,531
MSRs	—		—		83		83		—		—		80		80
Other assets - derivatives (2)	1		1,740		—		1,741		1		671		—		672
Total financial assets (5)	$	3,119	$	26,719	$	2,101	$	31,939	$	4,246	$	19,624	$	2,347	$	26,217
Financial liabilities:

Trading liabilities	3,848		177		—		4,025		3,728		274		—		4,002
Other liabilities - derivatives (2)	—		1,529		1		1,530		—		648		1		649
Total financial liabilities	$	3,848	$	1,706	$	1	$	5,555	$	3,728	$	922	$	1	$	4,651
Nonrecurring:
Financial assets:
Impaired commercial LHFI	$	—	$	361	$	454	$	815	$	—	$	213	$	3	$	216
Foreclosed assets	—		28		—		28		—		32		—		32
Vehicle inventory	—		371		—		371		—		379		—		379
LHFS	—		—		288		288		—		—		55		55
Auto loans impaired due to bankruptcy	—		171		—		171		—		168		—		168


Total financial assets valued at fair value on a non-recurring basis	$	—	$	931	$	742	$	1,673	$	—	$	792	$	58	$	850

(1) LHFS disclosed on the Condensed Consolidated Balance Sheets also includes LHFS that are held at the lower of cost or fair value and are presented within the nonrecurring section of this table.

(2) Refer to Note 2 for the fair value of investment securities and to Note 13 for the fair values of derivative assets and liabilities on a further disaggregated basis.

(3) Certain RICs collateralized by vehicle titles and RV/marine loans.

(4) Residential mortgage loans and commercial mortgage loans.

(5) Approximately $2.1 billion of these financial assets were measured using model-based techniques, or Level 3 inputs, and represented approximately 6.6% of total assets measured at fair value on a recurring basis and approximately 0.8% of total consolidated assets.

Schedule of Rollforward for Assets and Liabilities Measured at Fair Value on a Recurring Basis

The tables below present the changes in Level 3 balances for those assets and liabilities measured at fair value on a recurring basis for the periods indicated.



	Three months ended September 30, 2026														Three months ended September 30, 2025
(in millions)	Beneficial Interest in Structured LLC		RICs HFI		MSRs		Derivatives, net		Equity Securities		Trading Securities		Total		Beneficial interest in Structured LLC		RICs HFI		MSRs		Derivatives, net		Equity Securities		Trading Securities		Total
Balances, beginning of period	$	1,056	$	3	$	79	$	(1)	$	928	$	111	$	2,176	$	1,118	$	7	$	82	$	—	$	—	$	156	$	1,363
Gains / (losses) in OCI	(43)		—		—		—		—		—		(43)		(10)		—		—		—		—		—		(10)
Gains/(losses) in earnings	—		—		6		—		(3)		4		7		—		—		2		(1)		—		(6)		(5)
Additions/Issuances	—		—		1		—		—		1		2		—		—		—		—		832		10		842
Transfers from Level 2	—		—		—		—		—		6		6		—		—		—		—		—		68		68
Transfers from Level 3	—		—		—		—		(41)		—		(41)		—		—		—		—		—		—		—
Settlements(1)	—		—		(3)		—		6		(10)		(7)		(10)		(1)		(3)		—		—		(22)		(36)
Balances, end of period	$	1,013	$	3	$	83	$	(1)	$	890	$	112	$	2,100	$	1,098	$	6	$	81	$	(1)	$	832	$	206	$	2,222
Changes in unrealized gains (losses) included in earnings related to balances still held at end of period	$	—	$	—	$	6	$	—	$	(23)	$	4	$	(13)	$	—	$	—	$	2	$	(1)	$	—	$	(6)	$	(5)


	Nine months ended September 30, 2026														Nine months ended September 30, 2025
(in millions)	Beneficial Interest in Structured, LLC		RICs HFI		MSRs		Derivatives, net		Equity Securities		Trading Securities		Total		Beneficial interest in Structured, LLC		RICs HFI		MSRs		Derivatives, net		Equity Securities		Trading Securities		Total
Balances, beginning of period	$	1,097	$	5	$	80	$	(1)	$	992	$	173	$	2,346	$	1,199	$	9	$	91	$	—	$	—	$	6	$	1,305
Gain / (losses) in OCI	(56)		—		—		—		—		—		(56)		(81)		—		—		—		—		—		(81)
Gains/(losses) in earnings	—		—		10		—		(20)		2		(8)		—		—		(3)		(1)		—		(6)		(10)
Additions/Issuances	—		—		1		—		—		6		7		—		—		—		—		832		10		842
Transfers from Level 2	—		—		—		—		—		6		6		—		—		—		—		—		220		220
Transfers from Level 3	—		—		—		—		(41)		—		(41)		—		—		—		—		—		—		—
Settlements (1)	(28)		(2)		(8)		—		(41)		(75)		(154)		(20)		(3)		(7)		—		—		(24)		(54)
Balances, end of period	$	1,013	$	3	$	83	$	(1)	$	890	$	112	$	2,100	$	1,098	$	6	$	81	$	(1)	$	832	$	206	$	2,222
Changes in unrealized gains (losses) included in earnings related to balances still held at end of period	$	—	$	—	$	10	$	—	$	(58)	$	2	$	(46)	$	—	$	—	$	(3)	$	(1)	$	—	$	(6)	$	(10)

(1)Settlements include charge-offs, prepayments, paydowns, sales, and maturities.

Schedule of Assets Measured at Fair Value on a Nonrecurring Basis


(in millions)	Level 1		Level 2		Level 3		Balance at September 30, 2026		Level 1		Level 2		Level 3		Balance at December 31, 2025
Recurring:
Financial assets:
U.S. Treasury securities	$	226	$	—	$	—	$	226	$	706	$	—	$	—	$	706
Corporate debt	—		9		—		9		—		—		—		—
ABS	—		2,037		—		2,037		—		945		—		945
Beneficial interest in Structured LLC	—		—		1,013		1,013		—		—		1,097		1,097

MBS	—		6,378		—		6,378		—		4,580		—		4,580
Investment in debt securities AFS (2)	$	226	$	8,424	$	1,013	$	9,663	$	706	$	5,525	$	1,097	$	7,328
Trading securities	2,851		14,870		112		17,833		3,539		11,897		173		15,609
Equity securities	41		—		890		931		—		—		992		992

RICs HFI (3)	—		—		3		3		—		—		5		5
LHFS (1)(4)	—		1,685		—		1,685		—		1,531		—		1,531
MSRs	—		—		83		83		—		—		80		80
Other assets - derivatives (2)	1		1,740		—		1,741		1		671		—		672
Total financial assets (5)	$	3,119	$	26,719	$	2,101	$	31,939	$	4,246	$	19,624	$	2,347	$	26,217
Financial liabilities:

Trading liabilities	3,848		177		—		4,025		3,728		274		—		4,002
Other liabilities - derivatives (2)	—		1,529		1		1,530		—		648		1		649
Total financial liabilities	$	3,848	$	1,706	$	1	$	5,555	$	3,728	$	922	$	1	$	4,651
Nonrecurring:
Financial assets:
Impaired commercial LHFI	$	—	$	361	$	454	$	815	$	—	$	213	$	3	$	216
Foreclosed assets	—		28		—		28		—		32		—		32
Vehicle inventory	—		371		—		371		—		379		—		379
LHFS	—		—		288		288		—		—		55		55
Auto loans impaired due to bankruptcy	—		171		—		171		—		168		—		168


Total financial assets valued at fair value on a non-recurring basis	$	—	$	931	$	742	$	1,673	$	—	$	792	$	58	$	850

(1) LHFS disclosed on the Condensed Consolidated Balance Sheets also includes LHFS that are held at the lower of cost or fair value and are presented within the nonrecurring section of this table.

(2) Refer to Note 2 for the fair value of investment securities and to Note 13 for the fair values of derivative assets and liabilities on a further disaggregated basis.

(3) Certain RICs collateralized by vehicle titles and RV/marine loans.

(4) Residential mortgage loans and commercial mortgage loans.

Schedule of Increases and Decreases in Value of Certain Assets Measured at Fair Value on Nonrecurring Basis

The following table presents the increases and decreases in value of certain assets that are measured at fair value on a nonrecurring basis for which a fair value adjustment has been included in the Condensed Consolidated Statements of Operations relating to assets held at period-end:


		Three months ended September 30,				Nine months ended September 30,
(in millions)	Statement of Operations Location	2026		2025		2026		2025
Impaired LHFI	Credit loss expense / (benefit)	$	23	$	(8)	$	38	$	(9)
Foreclosed assets	Miscellaneous income, net (1)	—		—		4		(11)
LHFS	Credit loss expense / (benefit)	(2)		—		(2)		9
LHFS	Miscellaneous income, net (1)	—		—		(4)		—
Auto loans impaired due to bankruptcy	Credit loss expense / (benefit)	(8)		—		(7)		4

(1) Gains are disclosed as positive numbers while losses are shown as a negative number regardless of the line item being affected.

Schedule of Quantitative Information on Level 3 Recurring Assets and Liabilities

The following table presents quantitative information about the significant unobservable inputs within significant Level 3 recurring and nonrecurring assets and liabilities at the dates indicated:

(dollars in millions)

Fair Value at

September 30, 2026 (4)

Valuation Technique

Unobservable Inputs

Range
(Weighted Average)

Financial Assets:

Beneficial interest in Structured LLC

1,013

DCF

Discount spread

2.75% - 25.00% (14.35%)

Loss estimate

0.00% - 42.64% (6.55%)

Extension of loan(1)

48 months or 60 months

Equity securities

890

Market comparable pricing

Liquidity discount

0.00% - 25.00% (24.00%)

Multiples of revenue

0.8x - 17.9x (6.8x)

MSRs

DCF

CPR (2)

6.53% - 37.07% (6.94%)

Discount rate (3)

9.22

(1) Includes extensions related to workouts and contractual extensions.

(2) Average CPR projected from collateral stratified by loan type and note rate. Weighted average amount was developed by weighting the associated relative UPB.

(3) Average discount rate from collateral stratified by loan type and note rate. Weighted average amount was developed by weighting the associated relative UPB.

(4) Excluded insignificant Level 3 assets and liabilities.

NOTE 14. FAIR VALUE (continued)

(dollars in millions)

Fair Value at December 31, 2025 (4)

Valuation Technique

Unobservable Inputs

Range
(Weighted Average)

Financial Assets:

Beneficial interest in Structured LLC

1,097

DCF

Discount spread

2.75% - 25.00% (13.78%)

Loss estimate

0.00% - 81.33% (6.85%)

Extension of loan (1)

48 or 60 months

Equity securities

992

Market comparable pricing

Liquidity discount

0.00% - 25.00% (24.00%)

Multiples of revenue

0.8x - 17.9x (3.8x)

MSRs

DCF

CPR (2)

6.48% - 39.82% (7.07%)

Discount rate (3)

9.22

(1), (2), (3), (4) - See corresponding footnotes to the September 30, 2026 Level 3 significant inputs table above.

Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of the Company's financial instruments which have not previously been disclosed above are as follows as of the dates indicated:


	September 30, 2026										December 31, 2025
(dollars in millions)	Carrying Value		Fair Value		Level 1		Level 2		Level 3		Carrying Value		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash, cash equivalents, and restricted cash	$	30,230	$	30,230	$	30,230	$	—	$	—	$	19,696	$	19,696	$	19,696	$	—	$	—
Federal funds sold and securities purchased under resale agreements or similar arrangements	9,592		9,572		—		9,572		—		8,640		8,641		—		8,641		—
Investments in debt securities HTM	22,584		20,732		1,771		18,961		—		13,212		11,871		2,087		9,784		—
Equity and other investments (2)	936		936		41		5		890		997		997		—		5		992
LHFI, net (3)	135,058		137,215		—		532		136,683		76,891		77,028		—		382		76,646


Financial liabilities:
Deposits (1)	21,032		21,002		—		21,002		—		15,077		15,095		—		15,095		—
Federal funds purchased and securities loaned or sold under repurchase agreements	22,790		22,772		—		22,772		—		19,460		19,463		—		19,463		—
Borrowings and other debt obligations	42,816		42,790		—		42,408		382		37,102		37,747		—		34,364		3,383

(1) This line item excludes deposit liabilities with no defined or contractual maturities.

(2) This line item includes CDs with a maturity greater than 90 days and equity securities.

(3) This line item includes nonrecurring LHFI.

Schedule of Difference Between Fair Value and Principal Balance of LHFS

The following table summarizes the differences between the fair value and the principal balance of financial instruments measured at fair value on a recurring basis as of the dates indicated:


	September 30, 2026						December 31, 2025
(in millions)	Fair Value		Principal Balance		Difference		Fair Value		Principal Balance		Difference
LHFS(1)	$	1,685	$	1,668	$	17	$	1,531	$	1,484	$	47

RICs HFI	3		3		—		5		5		—

(1) LHFS disclosed on the Condensed Consolidated Balance Sheets also includes $288 million and $55 million of LHFS valued on a non-recurring basis at September 30, 2026 and December 31, 2025, respectively, that are held at the lower of cost or fair value that are not presented within this table. There were no nonaccrual loans related to the LHFS measured using the FVO.

- 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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