Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2024

Reconciliation of Accumulated Other Comprehensive Income (Loss)

The reconciliation of the transactions affecting accumulated other comprehensive income (loss) included in shareholders’ equity is as follows:


Three Months Ended September 30 (Dollars in Millions)	Unrealized Gains (Losses) on Investment Securities Available-for- Sale		Unrealized Gains (Losses) on Investment Securities Transferred From Available- for-Sale to Held-to-Maturity		Unrealized Gains (Losses) on Derivative Hedges		Unrealized Gains (Losses) on Retirement Plans		Foreign Currency Translation		Total
2024
Balance at beginning of period	$	(5,310)	$	(3,354)	$	(482)	$	(1,138)	$	(24)	$	(10,308)
Changes in unrealized gains (losses)	1,297		—		460		—		—		1,757
Foreign currency translation adjustment(a)	—		—		—		—		12		12
Reclassification to earnings of realized (gains) losses	119		132		77		—		—		328
Applicable income taxes	(361)		(33)		(138)		—		(3)		(535)
Balance at end of period	$	(4,255)	$	(3,255)	$	(83)	$	(1,138)	$	(15)	$	(8,746)
2023
Balance at beginning of period	$	(5,716)	$	(3,737)	$	(294)	$	(941)	$	(30)	$	(10,718)
Changes in unrealized gains (losses)	(1,881)		—		(349)		(1)		—		(2,231)

Foreign currency translation adjustment(a)	—		—		—		—		3		3
Reclassification to earnings of realized (gains) losses	—		144		28		(2)		—		170
Applicable income taxes	474		(37)		82		2		—		521
Balance at end of period	$	(7,123)	$	(3,630)	$	(533)	$	(942)	$	(27)	$	(12,255)
Nine Months Ended September 30 (Dollars in Millions)	Unrealized Gains (Losses) on Investment Securities Available-For- Sale		Unrealized Gains (Losses) on Investment Securities Transferred From Available- For-Sale to Held-To-Maturity		Unrealized Gains (Losses) on Derivative Hedges		Unrealized Gains (Losses) on Retirement Plans		Foreign Currency Translation		Total
2024
Balance at beginning of period	$	(5,151)	$	(3,537)	$	(242)	$	(1,138)	$	(28)	$	(10,096)
Changes in unrealized gains (losses)	1,048		—		8		—		—		1,056
Foreign currency translation adjustment(a)	—		—		—		—		16		16
Reclassification to earnings of realized (gains) losses	153		377		206		—		—		736
Applicable income taxes	(305)		(95)		(55)		—		(3)		(458)
Balance at end of period	$	(4,255)	$	(3,255)	$	(83)	$	(1,138)	$	(15)	$	(8,746)
2023
Balance at beginning of period	$	(6,378)	$	(3,933)	$	(114)	$	(939)	$	(43)	$	(11,407)
Changes in unrealized gains (losses)	(1,036)		—		(610)		—		—		(1,646)

Foreign currency translation adjustment(a)	—		—		—		—		21		21
Reclassification to earnings of realized (gains) losses	29		406		46		(6)		—		475
Applicable income taxes	262		(103)		145		3		(5)		302
Balance at end of period	$	(7,123)	$	(3,630)	$	(533)	$	(942)	$	(27)	$	(12,255)

(a)Represents the impact of changes in foreign currency exchange rates on the Company’s investment in foreign operations and related hedges.

Impact to Net Income for Items Reclassified out of Accumulated Other Comprehensive Income into Earnings

Additional detail about the impact to net income for items reclassified out of accumulated other comprehensive income (loss) and into earnings is as follows:


	Impact to Net Income
	Three Months Ended September 30				Nine Months Ended September 30				Affected Line Item in the Consolidated Statement of Income
(Dollars in Millions)	2024		2023		2024		2023
Unrealized gains (losses) on investment securities available-for-sale
Realized gains (losses) on sales of investment securities	$	(119)	$	—	$	(153)	$	(29)	Securities gains (losses), net
	31		—		39		7		Applicable income taxes
	(88)		—		(114)		(22)		Net-of-tax
Unrealized gains (losses) on investment securities transferred from available-for-sale to held-to-maturity
Amortization of unrealized gains (losses)	(132)		(144)		(377)		(406)		Interest income
	33		37		95		103		Applicable income taxes
	(99)		(107)		(282)		(303)		Net-of-tax
Unrealized gains (losses) on derivative hedges
Realized gains (losses) on derivative hedges	(77)		(28)		(206)		(46)		Net interest income
	20		8		53		12		Applicable income taxes
	(57)		(20)		(153)		(34)		Net-of-tax
Unrealized gains (losses) on retirement plans
Actuarial gains (losses) and prior service cost (credit) amortization	—		2		—		6		Other noninterest expense
	—		(1)		—		(2)		Applicable income taxes
	—		1		—		4		Net-of-tax
Total impact to net income	$	(244)	$	(126)	$	(549)	$	(355)