Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2025

Accumulated Other Comprehensive Income (Loss)


NOTE 8			Accumulated Other Comprehensive Income (Loss)

Shareholders’ equity is affected by transactions and valuations of asset and liability positions that require adjustments to 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 June 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		Debit Valuation Adjustments		Foreign Currency Translation		Total
2025
Balance at beginning of period	$	(4,699)	$	(3,082)	$	(297)	$	(956)	$	2	$	(10)	$	(9,042)
Changes in unrealized gains (losses)	198		—		157		—		(5)		—		350
Foreign currency translation adjustment(a)	—		—		—		—		—		(8)		(8)
Reclassification to earnings of realized (gains) losses	57		123		66		(2)		—		—		244
Applicable income taxes	(69)		(33)		(58)		4		2		1		(153)
Balance at end of period	$	(4,513)	$	(2,992)	$	(132)	$	(954)	$	(1)	$	(17)	$	(8,609)
2024
Balance at beginning of period	$	(5,279)	$	(3,452)	$	(461)	$	(1,138)	$	—	$	(23)	$	(10,353)
Changes in unrealized gains (losses)	(78)		—		(109)		—		—		—		(187)

Foreign currency translation adjustment(a)	—		—		—		—		—		(2)		(2)
Reclassification to earnings of realized (gains) losses	36		131		80		—		—		—		247
Applicable income taxes	11		(33)		8		—		—		1		(13)
Balance at end of period	$	(5,310)	$	(3,354)	$	(482)	$	(1,138)	$	—	$	(24)	$	(10,308)
Six Months Ended June 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		Debit Valuation Adjustments		Foreign Currency Translation		Total
2025
Balance at beginning of period	$	(5,078)	$	(3,165)	$	(553)	$	(955)	$	1	$	(14)	$	(9,764)
Changes in unrealized gains (losses)	706		—		441		—		(3)		—		1,144
Foreign currency translation adjustment(a)	—		—		—		—		—		(4)		(4)
Reclassification to earnings of realized (gains) losses	57		234		126		(3)		—		—		414
Applicable income taxes	(198)		(61)		(146)		4		1		1		(399)
Balance at end of period	$	(4,513)	$	(2,992)	$	(132)	$	(954)	$	(1)	$	(17)	$	(8,609)
2024
Balance at beginning of period	$	(5,151)	$	(3,537)	$	(242)	$	(1,138)	$	—	$	(28)	$	(10,096)
Changes in unrealized gains (losses)	(249)		—		(452)		—		—		—		(701)

Foreign currency translation adjustment(a)	—		—		—		—		—		4		4
Reclassification to earnings of realized (gains) losses	34		245		129		—		—		—		408
Applicable income taxes	56		(62)		83		—		—		—		77
Balance at end of period	$	(5,310)	$	(3,354)	$	(482)	$	(1,138)	$	—	$	(24)	$	(10,308)

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

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 June 30				Six Months Ended June 30				Affected Line Item in the Consolidated Statement of Income
(Dollars in Millions)	2025		2024		2025		2024
Unrealized gains (losses) on investment securities available-for-sale
Realized gains (losses) on sales of investment securities	$	(57)	$	(36)	$	(57)	$	(34)	Securities gains (losses), net
	14		9		14		8		Applicable income taxes
	(43)		(27)		(43)		(26)		Net-of-tax
Unrealized gains (losses) on investment securities transferred from available-for-sale to held-to-maturity
Amortization of unrealized gains (losses)	(123)		(131)		(234)		(245)		Interest income
	33		33		61		62		Applicable income taxes
	(90)		(98)		(173)		(183)		Net-of-tax
Unrealized gains (losses) on derivative hedges
Realized gains (losses) on derivative hedges	(66)		(80)		(126)		(129)		Net interest income
	17		20		32		33		Applicable income taxes
	(49)		(60)		(94)		(96)		Net-of-tax
Unrealized gains (losses) on retirement plans
Actuarial gains (losses) and prior service cost (credit) amortization	2		—		3		—		Other noninterest expense
	(1)		—		(1)		—		Applicable income taxes
	1		—		2		—		Net-of-tax
Total impact to net income	$	(181)	$	(185)	$	(308)	$	(305)