Derivative financial instruments (Tables)

3 Months Ended

Mar. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Information about Interest Rate Swap Agreements

Information about interest rate swap agreements entered into for interest rate risk management purposes summarized by type of financial instrument the swap agreements were intended to hedge follows:

	Notional Amount		Weighted-Average Maturity (In years)	Weighted- Average Rate				Estimated Fair Value Gain (Loss) (a)
(Dollars in millions)				Fixed		Variable
March 31, 2025
Fair value hedges:
Fixed rate long-term borrowings (b) (d)	$	5,350	5.6	3.55	%	4.43	%	$	9
Cash flow hedges:
Interest payments on variable rate commercial real estate and commercial    and industrial loans (b) (e)	27,469		1.5	3.54		4.33		3
Total	$	32,819	2.2					$	12
December 31, 2024
Fair value hedges:
Fixed rate long-term borrowings (b) (f)	$	5,350	5.9	3.55	%	4.71	%	$	(2)
Fixed rate investment securities available for sale (c)	15		0.1	4.84		4.36		—
Cash flow hedges:
Interest payments on variable rate commercial real estate loans (b) (g)	30,819		1.6	3.41		4.47		1
Total	$	36,184	2.2					$	(1)

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(a)Certain clearinghouse exchanges consider payments by counterparties for variation margin on derivative instruments to be settlements of those positions. The impact of such payments for interest rate swap agreements designated as fair value hedges was a net settlement of losses of $71 million and of losses of $153 million at March 31, 2025 and December 31, 2024, respectively. The impact of such payments on interest rate swap agreements designated as cash flow hedges was a net settlement of gains of $6 million and of losses of $136 million at March 31, 2025 and December 31, 2024, respectively.

(b)Under the terms of these agreements, the Company receives settlement amounts at a fixed rate and pays at a variable rate.

(c)Under the terms of these agreements, the Company receives settlement amounts at a variable rate and pays at a fixed rate.

(d)Includes notional amount and terms of $2.5 billion of forward-starting interest rate swap agreements that become effective in 2025 and 2026.

(e)Includes notional amount and terms of $8.5 billion of forward-starting interest rate swap agreements that become effective in 2025 and 2026.

(f)Includes notional amount and terms of $3.4 billion of forward-starting interest rate swap agreements that become effective in 2025 and 2026.

(g)Includes notional amount and terms of $10.0 billion of forward-starting interest rate swap agreements that become effective in 2025 and 2026.

Information about Fair Values of Derivative Instruments in Consolidated Balance Sheet

Information about the fair values of derivative instruments in the Company’s Consolidated Balance Sheet and Consolidated Statement of Income follows:

	Asset Derivatives				Liability Derivatives
	Fair Value				Fair Value
(Dollars in millions)	March 31, 2025		December 31, 2024		March 31, 2025		December 31, 2024
Derivatives designated and qualifying as hedging instruments (a)
Interest rate swap agreements	$	12	$	2	$	—	$	3
Commitments to sell real estate loans	1		4		1		—
	13		6		1		3
Derivatives not designated and qualifying as hedging instruments (a)
Mortgage banking:
Commitments to originate real estate loans for sale	17		4		25		32
Commitments to sell real estate loans	28		39		6		—
	45		43		31		32
Other:
Interest rate contracts (b)	166		185		589		769
Foreign exchange and other option and futures contracts	15		21		11		18
	181		206		600		787
Total derivatives	$	239	$	255	$	632	$	822

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(a)Asset derivatives are reported in Accrued interest and other assets and liability derivatives are reported in Accrued interest and other liabilities in the Consolidated Balance Sheet.

(b)The impact of variation margin payments at March 31, 2025 and December 31, 2024 was a reduction of the estimated fair value of interest rate contracts not designated as hedging instruments in an asset position of $533 million and $686 million, respectively, and in a liability position of $27 million and $15 million, respectivel

	Carrying Amount of the Hedged Item				Cumulative Amount of Fair Value Hedging Adjustment Increasing (Decreasing) the Carrying Amount of the Hedged Item
(Dollars in millions)	March 31, 2025		December 31, 2024		March 31, 2025		December 31, 2024
Location in the Consolidated Balance Sheet of the Hedged Items in Fair Value Hedges
Long-term borrowings	$	5,277	$	5,184	$	(63)	$	(155)
Investment securities available for sale			381				—

Information about Fair Values of Derivative Instruments in Consolidated Statement of Income

	Amount of Gain (Loss) Recognized
	Three Months Ended March 31,
	2025				2024
(Dollars in millions)	Derivative		Hedged Item		Derivative		Hedged Item
Derivatives in fair value hedging relationships
Interest rate swap agreements:
Fixed rate long-term borrowings (a)	$	93	$	(92)	$	(60)	$	60
Derivatives not designated as hedging instruments
Interest rate contracts (b)	$	5			$	3
Foreign exchange and other option and futures contracts (b)	4				4
Total	$	9			$	7

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(a)Reported as an adjustment to Interest expense in the Consolidated Statement of Income.

(b)Reported as Trading account and other non-hedging derivative gains in the Consolidated Statement of Income.