Fair Values of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2024

Fair Value Disclosures [Abstract]

Valuation Assumption Ranges for MSRs

The following table shows the significant valuation assumption ranges for MSRs at December 31, 2024:

	Minimum		Maximum		Weighted- Average(a)
Expected prepayment	6	%	18	%	9	%
Option adjusted spread	5		11		6

(a)Determined based on the relative fair value of the related mortgage loans serviced.

Valuation Assumption Ranges for Derivative Commitments

The following table shows the significant valuation assumption ranges for the Company’s derivative commitments to purchase and originate mortgage loans at December 31, 2024:

	Minimum		Maximum		Weighted- Average(a)
Expected loan close rate	25	%	100	%	83	%
Inherent MSR value (basis points per loan)	63		196		116

(a)Determined based on the relative fair value of the related mortgage loans.

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table summarizes the balances of assets and liabilities measured at fair value on a recurring basis:

(Dollars in Millions)	Level 1		Level 2		Level 3		Netting		Total
December 31, 2024
Available-for-sale securities
U.S. Treasury and agencies	$	23,891	$	4,496	$	—	$	—	$	28,387
Mortgage-backed securities
Residential agency	—		33,281		—		—		33,281
Commercial
Agency	—		7,351		—		—		7,351
Non-agency	—		6		—		—		6
Asset-backed securities	—		7,165		—		—		7,165
Obligations of state and political subdivisions	—		9,552		—		—		9,552
Other	—		250		—		—		250
Total available-for-sale	23,891		62,101		—		—		85,992
Mortgage loans held for sale	—		2,251		—		—		2,251
Mortgage servicing rights	—		—		3,369		—		3,369
Derivative assets	27		5,208		1,202		(2,979)		3,458
Other assets	420		1,769		—		—		2,189
Total	$	24,338	$	71,329	$	4,571	$	(2,979)	$	97,259
Time deposits	$	—	$	5,754	$	—	$	—	$	5,754
Long-term debt	—		391		—		—		391
Derivative liabilities	27		5,131		3,002		(2,949)		5,211
Short-term borrowings and other liabilities(a)	475		1,460		—		—		1,935
Total	$	502	$	12,736	$	3,002	$	(2,949)	$	13,291
December 31, 2023
Available-for-sale securities
U.S. Treasury and agencies	$	14,787	$	4,755	$	—	$	—	$	19,542
Mortgage-backed securities
Residential agency	—		26,078		—		—		26,078
Commercial
Agency	—		7,343		—		—		7,343
Non-agency	—		6		—		—		6
Asset-backed securities	—		6,724		—		—		6,724
Obligations of state and political subdivisions	—		9,989		—		—		9,989
Other	—		24		—		—		24
Total available-for-sale	14,787		54,919		—		—		69,706
Mortgage loans held for sale	—		2,011		—		—		2,011
Mortgage servicing rights	—		—		3,377		—		3,377
Derivative assets	—		5,078		1,453		(3,666)		2,865
Other assets	550		1,991		—		—		2,541
Total	$	15,337	$	63,999	$	4,830	$	(3,666)	$	80,500
Time Deposits	$	—	$	2,818	$	—	$	—	$	2,818
Derivative liabilities	16		4,955		3,338		(3,720)		4,589
Short-term borrowings and other liabilities(a)	517		1,786		—		—		2,303
Total	$	533	$	9,559	$	3,338	$	(3,720)	$	9,710

Note: Excluded from the table above are equity investments without readily determinable fair values. The Company has elected to carry these investments at historical cost, adjusted for impairment and any changes resulting from observable price changes for identical or similar investments of the issuer. The aggregate carrying amount of these equity investments was $159 million and $133 million at December 31, 2024 and 2023, respectively, and reflect no impairment or observable price change adjustment at December 31, 2024, compared with a cumulative impairment of $5 million and no observable price change adjustment at December 31, 2023. The Company recorded a $5 million impairment on these equity investments during 2023. The Company did not record any adjustments for observable price changes during 2024 and 2023.

(a)Primarily represents the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance.

Changes in Fair Value for Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)

The following table presents the changes in fair value for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31:

(Dollars in Millions)	Beginning of Period Balance		Net Gains (Losses) Included in Net Income			Net Gains (Losses) Included in Other Comprehensive Income (Loss)		Purchases		Sales		Principal Payments		Issuances			Settlements		End of Period Balance		Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period
2024
Mortgage servicing rights	$	3,377	$	(97)	(a)	$	—	$	1	$	(188)	$	—	$	276	(c)	$	—	$	3,369	$	(97)	(a)
Net derivative assets and liabilities	(1,885)		(3,829)		(b)	—		1,076		(18)		—		1			2,855		(1,800)		(492)		(d)
2023
Available-for-sale securities
Obligations of state and political subdivisions	$	1	$	—		$	—	$	—	$	—	$	(1)	$	—		$	—	$	—	$	—
Total available-for-sale	1		—			—		—		—		(1)		—			—		—		—
Mortgage servicing rights	3,755		(316)		(a)	—		5		(440)		—		373		(c)	—		3,377		(316)		(a)
Net derivative assets and liabilities	(3,199)		(2,696)		(e)	—		552		(45)		—		1			3,502		(1,885)		(183)		(f)
2022
Available-for-sale securities
Asset-backed securities	$	7	$	—		$	(3)	$	—	$	(4)	$	—	$	—		$	—	$	—	$	—
Obligations of state and political subdivisions	1		—			—		—		—		—		—			—		1		—
Total available-for-sale	8		—			(3)		—		(4)		—		—			—		1		—
Mortgage servicing rights	2,953		311		(a)	—		156		(255)		—		590		(c)	—		3,755		311		(a)
Net derivative assets and liabilities	799		(5,940)		(g)	—		716		(36)		—		11			1,251		(3,199)		(3,538)		(h)

(a)Included in mortgage banking revenue.

(b)Approximately $200 million, $(3.9) billion and $(147) million included in mortgage banking revenue, commercial products revenue and other non-interest income, respectively.

(c)Represents MSRs capitalized during the period.

(d)Approximately $7 million, $(352) million and $(147) million included in mortgage banking revenue, commercial products revenue and other non-interest income, respectively.

(e)Approximately $182 million, $(2.9) billion and $1 million included in mortgage banking revenue, commercial products revenue and other non-interest income, respectively.

(f)Approximately $15 million, $(199) million and $1 million included in mortgage banking revenue, commercial products revenue and other non-interest income, respectively.

(g)Approximately $(141) million, $(5.6) billion and $(181) million included in mortgage banking revenue, commercial products revenue and other non-interest income, respectively.

(h)Approximately $5 million, $(3.4) billion and $(181) million included in mortgage banking revenue, commercial products revenue and other non-interest income, respectively.

Changes in Fair Value for Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)

The following table presents the changes in fair value for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31:

(Dollars in Millions)	Beginning of Period Balance		Net Gains (Losses) Included in Net Income			Net Gains (Losses) Included in Other Comprehensive Income (Loss)		Purchases		Sales		Principal Payments		Issuances			Settlements		End of Period Balance		Net Change in Unrealized Gains (Losses) Relating to Assets and Liabilities Held at End of Period
2024
Mortgage servicing rights	$	3,377	$	(97)	(a)	$	—	$	1	$	(188)	$	—	$	276	(c)	$	—	$	3,369	$	(97)	(a)
Net derivative assets and liabilities	(1,885)		(3,829)		(b)	—		1,076		(18)		—		1			2,855		(1,800)		(492)		(d)
2023
Available-for-sale securities
Obligations of state and political subdivisions	$	1	$	—		$	—	$	—	$	—	$	(1)	$	—		$	—	$	—	$	—
Total available-for-sale	1		—			—		—		—		(1)		—			—		—		—
Mortgage servicing rights	3,755		(316)		(a)	—		5		(440)		—		373		(c)	—		3,377		(316)		(a)
Net derivative assets and liabilities	(3,199)		(2,696)		(e)	—		552		(45)		—		1			3,502		(1,885)		(183)		(f)
2022
Available-for-sale securities
Asset-backed securities	$	7	$	—		$	(3)	$	—	$	(4)	$	—	$	—		$	—	$	—	$	—
Obligations of state and political subdivisions	1		—			—		—		—		—		—			—		1		—
Total available-for-sale	8		—			(3)		—		(4)		—		—			—		1		—
Mortgage servicing rights	2,953		311		(a)	—		156		(255)		—		590		(c)	—		3,755		311		(a)
Net derivative assets and liabilities	799		(5,940)		(g)	—		716		(36)		—		11			1,251		(3,199)		(3,538)		(h)

(a)Included in mortgage banking revenue.

(b)Approximately $200 million, $(3.9) billion and $(147) million included in mortgage banking revenue, commercial products revenue and other non-interest income, respectively.

(c)Represents MSRs capitalized during the period.

(d)Approximately $7 million, $(352) million and $(147) million included in mortgage banking revenue, commercial products revenue and other non-interest income, respectively.

(e)Approximately $182 million, $(2.9) billion and $1 million included in mortgage banking revenue, commercial products revenue and other non-interest income, respectively.

(f)Approximately $15 million, $(199) million and $1 million included in mortgage banking revenue, commercial products revenue and other non-interest income, respectively.

(g)Approximately $(141) million, $(5.6) billion and $(181) million included in mortgage banking revenue, commercial products revenue and other non-interest income, respectively.

(h)Approximately $5 million, $(3.4) billion and $(181) million included in mortgage banking revenue, commercial products revenue and other non-interest income, respectively.

Assets Measured at Fair Value on Nonrecurring Basis

The following table summarizes the balances as of the measurement date of assets measured at fair value on a nonrecurring basis, and still held as of December 31:

	2024								2023
(Dollars in Millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Loans(a)	$	—	$	—	$	636	$	636	$	—	$	—	$	354	$	354
Other assets(b)	—		—		25		25		—		—		27		27

(a)Represents the carrying value of loans for which adjustments were based on the fair value of the collateral, excluding loans fully charged-off.

(b)Primarily represents the fair value of foreclosed properties that were measured at fair value based on an appraisal or broker price opinion of the collateral subsequent to their initial acquisition.

Losses Recognized Related to Nonrecurring Fair Value Measurements

The following table summarizes losses recognized related to nonrecurring fair value measurements of individual assets or portfolios for the years ended December 31:

(Dollars in Millions)	2024		2023		2022
Loans(a)	$	399	$	368	$	40
Other assets(b)	12		32		20

(a)Represents write-downs of loans which were based on the fair value of the collateral, excluding loans fully charged-off.

(b)Primarily represents related losses of foreclosed properties that were measured at fair value subsequent to their initial acquisition.

Estimated Fair Values of Financial Instruments

The estimated fair values of the Company’s financial instruments as of December 31, are shown in the table below:

	2024										2023
	Carrying Amount		Fair Value								Carrying Amount		Fair Value
(Dollars in Millions)			Level 1		Level 2		Level 3		Total				Level 1		Level 2		Level 3		Total
Financial Assets
Cash and due from banks	$	56,502	$	56,502	$	—	$	—	$	56,502	$	61,192	$	61,192	$	—	$	—	$	61,192
Federal funds sold and securities purchased under resale agreements	6,380		—		6,380		—		6,380		2,543		—		2,543		—		2,543
Investment securities held-to-maturity	78,634		1,275		65,000		—		66,275		84,045		1,310		72,778		—		74,088
Loans held for sale(a)	322		—		—		322		322		190		—		—		190		190
Loans, net of allowance for losses	372,249		—		—		365,628		365,628		366,456		—		—		362,849		362,849
Other(b)	2,482		—		1,767		715		2,482		2,377		—		1,863		514		2,377
Financial Liabilities
Time deposits(c)	49,015		—		49,156		—		49,156		49,455		—		49,607		—		49,607
Short-term borrowings(d)	13,583		—		13,419		—		13,419		12,976		—		12,729		—		12,729
Long-term debt(e)	57,611		—		56,441		—		56,441		51,480		—		49,697		—		49,697
Other(f)	5,220		—		1,369		3,851		5,220		5,432		—		1,406		4,026		5,432

(a)Excludes mortgages held for sale for which the fair value option under applicable accounting guidance was elected.

(b)Includes investments in Federal Reserve Bank and Federal Home Loan Bank stock and tax-advantaged investments.

(c)Excludes time deposits for which the fair value option under applicable accounting guidance was elected.

(d)Excludes the Company’s obligation on securities sold short required to be accounted for at fair value per applicable accounting guidance.

(e)Excludes structured long-term notes for which the fair value option under applicable accounting guidance was elected.

(f)Includes operating lease liabilities and liabilities related to tax-advantaged investments.

Differences Between Aggregate Fair Value Carrying Amount of MLHFS for which Fair Value Option has been Elected and Aggregate Unpaid Principal Amount Contractually Obligated to Receive at Maturity

The following table summarizes the differences between the aggregate fair value carrying amount of the assets and liabilities for which the fair value option has been elected and the aggregate remaining contractual principal balance outstanding as of December 31:

	2024						2023
(Dollars in Millions)	Fair Value Carrying Amount		Contractual Principal Outstanding		Carrying Amount Over (Under) Contractual Principal Outstanding		Fair Value Carrying Amount		Contractual Principal Outstanding		Carrying Amount Over (Under) Contractual Principal Outstanding
Total loans(a)	$	2,251	$	2,243	$	8	$	2,011	$	1,994	$	17
Time deposits	5,754		5,762		(8)		2,818		2,822		(4)
Long-term debt	391		409		(18)		—		—		—

(a)Includes nonaccrual loans of $1 million carried at fair value with contractual principal outstanding of $1 million at December 31, 2024 and $1 million carried at fair value with contractual principal outstanding of $1 million at December 31, 2023. Includes loans 90 days or more past due of $4 million carried at fair value with contractual principal outstanding of $4 million at December 31, 2024 and $4 million carried at fair value with contractual principal outstanding of $4 million at December 31, 2023.