Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

The following tables reflect the notional amounts and fair values for all derivative instruments included in the Condensed Consolidated Balance Sheets as of:

			Fair Value
September 30, 2024 ($ in millions)	Notional Amount		Derivative Assets		Derivative Liabilities
Derivatives Designated as Qualifying Hedging Instruments:
Fair value hedges:
Interest rate swaps related to long-term debt	$	5,955	—		27
Total fair value hedges			—		27
Cash flow hedges:
Interest rate floors related to C&I loans	3,000		—		—
Interest rate swaps related to C&I loans	8,000		—		10
Interest rate swaps related to C&I loans - forward starting(a)	4,000		—		—
Interest rate swaps related to commercial mortgage and commercial construction loans -    forward starting(a)	4,000		—		—
Total cash flow hedges			—		10
Total derivatives designated as qualifying hedging instruments			—		37
Derivatives Not Designated as Qualifying Hedging Instruments:
Free-standing derivatives – risk management and other business purposes:
Interest rate contracts related to MSR portfolio	3,505		11		1
Forward contracts related to residential mortgage loans measured at fair value(b)	1,040		1		4
Swap associated with the sale of Visa, Inc. Class B Shares	2,206		—		196
Foreign exchange contracts	175		—		—
Interest-only strips	32		1		—
Interest rate contracts for collateral management	1,000		—		—
Interest rate contracts for LIBOR transition	597		—		—
Other	41		—		—
Total free-standing derivatives – risk management and other business purposes			13		201
Free-standing derivatives – customer accommodation:
Interest rate contracts(c)(d)	89,233		628		777
Interest rate lock commitments	398		6		—
Commodity contracts	16,977		712		702
TBA securities	17		—		—
Foreign exchange contracts	38,815		739		710
Total free-standing derivatives – customer accommodation			2,085		2,189
Total derivatives not designated as qualifying hedging instruments			2,098		2,390
Total			$	2,098	2,427

(a)Forward starting swaps will become effective on various dates between December 2024 and February 2025.

(b)Includes forward sale and forward purchase contracts which are utilized to manage market risk on residential mortgage loans held for sale and the related interest rate lock commitments in addition to certain portfolio residential mortgage loans measured at fair value.

(c)Derivative assets and liabilities are presented net of variation margin of $190 and $49, respectively.

(d)Includes replacement contracts with a notional amount of approximately $675 million which were the result of certain central clearing parties replacing existing LIBOR-based contracts with multiple separate contracts as part of the LIBOR transition.

			Fair Value
December 31, 2023 ($ in millions)	Notional Amount		Derivative Assets		Derivative Liabilities
Derivatives Designated as Qualifying Hedging Instruments:
Fair value hedges:
Interest rate swaps related to long-term debt	$	5,955	—		32
Total fair value hedges			—		32
Cash flow hedges:
Interest rate floors related to C&I loans	3,000		1		—
Interest rate swaps related to C&I loans	8,000		2		11
Interest rate swaps related to C&I loans - forward starting(a)	6,000		6		1
Interest rate swaps related to commercial mortgage and commercial construction loans - forward starting(a)	4,000		1		1
Total cash flow hedges			10		13
Total derivatives designated as qualifying hedging instruments			10		45
Derivatives Not Designated as Qualifying Hedging Instruments:
Free-standing derivatives – risk management and other business purposes:
Interest rate contracts related to MSR portfolio	3,205		81		—
Forward contracts related to residential mortgage loans measured at fair value(b)	650		—		5
Swap associated with the sale of Visa, Inc. Class B Shares	4,178		—		168
Foreign exchange contracts	190		—		4
Interest-only strips	39		1		—
Interest rate contracts for collateral management	5,000		1		1
Interest rate contracts for LIBOR transition	597		—		—
Other	30		—		—
Total free-standing derivatives – risk management and other business purposes			83		178
Free-standing derivatives – customer accommodation:
Interest rate contracts(c)(d)	95,079		885		1,162
Interest rate lock commitments	252		5		—
Commodity contracts	17,621		1,051		1,018
TBA securities	27		—		—
Foreign exchange contracts	37,734		643		596
Total free-standing derivatives – customer accommodation			2,584		2,776
Total derivatives not designated as qualifying hedging instruments			2,667		2,954
Total			$	2,677	2,999

(a)Forward starting swaps will become effective on various dates between June 2024 and February 2025.

(b)Includes forward sale and forward purchase contracts which are utilized to manage market risk on residential mortgage loans held for sale and the related interest rate lock commitments in addition to certain portfolio residential mortgage loans measured at fair value.

(c)Derivative assets and liabilities are presented net of variation margin of $335 and $58, respectively.

(d)Includes replacement contracts with a notional amount of approximately $675 million which were the result of certain central clearing parties replacing existing LIBOR-based contracts with multiple separate contracts as part of the LIBOR transition.

Net Gains (Losses) Recognized in the Income Statement Related to Derivatives in Fair Value Hedging Relationships

The following table reflects the changes in fair value of interest rate contracts, designated as fair value hedges and the changes in fair value of the related hedged items attributable to the risk being hedged, as well as the line items in the Condensed Consolidated Statements of Income in which the corresponding gains or losses are recorded:

	Condensed Consolidated Statements of Income Caption	For the three months ended September 30,			For the nine months ended September 30,
($ in millions)		2024		2023	2024	2023
Long-term debt:
Change in fair value of interest rate swaps hedging long-term debt	Interest on long-term debt	$	190	(147)	76	(186)
Change in fair value of hedged long-term debt attributable to the risk being hedged	Interest on long-term debt	(190)		146	(76)	188

The following amounts were recorded in the Condensed Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges as of:

($ in millions)	Condensed Consolidated Balance Sheets Caption	September 30, 2024		December 31, 2023
Long-term debt:
Carrying amount of the hedged items	Long-term debt	$	5,977	5,899
Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items	Long-term debt	38		(38)
Available-for-sale debt and other securities:
Cumulative amount of fair value hedging adjustments remaining for hedged items for which hedge accounting has been discontinued	Available-for-sale debt and other securities	(10)		(11)

Net Gains (Losses) Relating to Derivative Instruments Designated as Cash Flow Hedges

The following table presents the pre-tax net (losses) gains recorded in the Condensed Consolidated Statements of Income and in the Condensed Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges:

	For the three months ended September 30,			For the nine months ended September 30,
($ in millions)	2024		2023	2024	2023
Amount of pre-tax net (losses) gains recognized in OCI	$	530	(687)	(29)	(864)
Amount of pre-tax net losses reclassified from OCI into net income	(91)		(94)	(270)	(240)

Schedule of Price Risk Derivatives

The net (losses) gains recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for risk management and other business purposes are summarized in the following table:

	Condensed Consolidated Statements of Income Caption	For the three months ended September 30,			For the nine months ended September 30,
($ in millions)		2024		2023	2024	2023
Interest rate contracts:
Interest rate contracts related to MSR portfolio	Mortgage banking net revenue	$	45	(75)	(17)	(110)
Forward contracts related to residential mortgage loans measured at fair value	Mortgage banking net revenue	(7)		6	(1)	9
Interest-only strips	Other noninterest income	—		—	—	(3)
Foreign exchange contracts:
Foreign exchange contracts for risk management purposes	Other noninterest income	(1)		5	5	1
Equity contracts:
Swap associated with sale of Visa, Inc. Class B Shares	Other noninterest income	(47)		(10)	(87)	(72)

Risk Ratings of the Notional Amount of Risk Participation Agreements

Risk ratings of the notional amount of risk participation agreements under this risk rating system are summarized in the following table as of:

($ in millions)	September 30, 2024		December 31, 2023
Pass	$	3,026	3,168
Special mention	149		323
Substandard	95		72
Total	$	3,270	3,563

Net Gains (Losses) Recognized in the Income Statement Related to Free-Standing Derivative Instruments Used For Customer Accommodation

The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for customer accommodation are summarized in the following table:

	Condensed Consolidated Statements of Income Caption	For the three months ended September 30,			For the nine months ended September 30,
($ in millions)		2024		2023	2024	2023
Interest rate contracts:
Interest rate contracts for customers (contract revenue)	Commercial banking revenue	$	9	5	20	26
Interest rate contracts for customers (credit portion of fair value adjustment)	Other noninterest expense	(4)		4	—	2
Interest rate lock commitments	Mortgage banking net revenue	17		7	37	33
Commodity contracts:
Commodity contracts for customers (contract revenue)	Commercial banking revenue	3		9	11	30
Commodity contracts for customers (credit portion of fair value adjustment)	Other noninterest expense	—		1	1	—
Foreign exchange contracts:
Foreign exchange contracts for customers (contract revenue)	Commercial banking revenue	18		24	57	67
Foreign exchange contracts for customers (contract revenue)	Other noninterest income	(16)		7	(13)	—
Foreign exchange contracts for customers (credit portion of fair value adjustment)	Other noninterest expense	—		1	—	3

Offsetting Derivative Financial Instruments

The following table provides a summary of offsetting derivative financial instruments:

	Gross Amount Recognized in the Condensed Consolidated Balance Sheets(a)		Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets
			Derivatives	Collateral(b)	Net Amount
As of September 30, 2024
Derivative assets	$	2,092	(1,178)	(251)	663
Derivative liabilities	2,427		(1,178)	(231)	1,018
As of December 31, 2023
Derivative assets	$	2,672	(1,031)	(877)	764
Derivative liabilities	2,999		(1,031)	(159)	1,809

(a)Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements.

(b)Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Condensed Consolidated Balance Sheets were excluded from this table.