FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Fair Value Measurement Inputs and Valuation Techniques

The fair value hierarchy is broken down into three levels based on the reliability of inputs as follows:

TABLE 25.1


Measurement Category						Definition

Level 1						Valuation is based upon unadjusted quoted market prices for identical instruments traded in active markets.

Level 2						Valuation is based upon quoted market prices for similar instruments traded in active markets, quoted market prices for identical or similar instruments traded in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by market data.

Level 3						Valuation is derived from other valuation methodologies including discounted cash flow models and similar techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in determining fair value.

Schedule of Balances of Assets and Liabilities Measured at Fair Value on Recurring Basis

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

TABLE 25.2


(in millions)	Level 1		Level 2		Level 3		Total
December 31, 2024
Assets Measured at Fair Value
Debt securities available for sale
U.S. Treasury	$	274	$	—	$	—	$	274
U.S. government agencies	—		53		—		53
U.S. government-sponsored enterprises	—		300		—		300
Residential MBS
Agency MBS	—		694		—		694
Agency collateralized mortgage obligations	—		698		—		698

Agency commercial MBS	—		1,388		—		1,388
States of the U.S. and political subdivisions (municipals)	—		22		—		22
Other debt securities	—		37		—		37
Total debt securities available for sale	274		3,192		—		3,466
Loans held for sale	—		214		—		214





Loans receivable	—		—		53		53
Derivative financial instruments
Trading	—		112		—		112
Not for trading	—		4		1		5
Total derivative financial instruments	—		116		1		117
Total assets measured at fair value on a recurring basis	$	274	$	3,522	$	54	$	3,850
Liabilities Measured at Fair Value
Derivative financial instruments
Trading	$	—	$	303	$	—	$	303
Not for trading	—		6		4		10
Total derivative financial instruments	—		309		4		313
Total liabilities measured at fair value on a recurring basis	$	—	$	309	$	4	$	313


(in millions)	Level 1		Level 2		Level 3		Total
December 31, 2023
Assets Measured at Fair Value
Debt securities available for sale
U.S. Treasury	$	420	$	—	$	—	$	420
U.S. government agencies	—		79		—		79
U.S. government-sponsored enterprises	—		223		—		223
Residential MBS
Agency MBS	—		752		—		752
Agency collateralized mortgage obligations	—		832		—		832

Agency commercial MBS	—		884		—		884
States of the U.S. and political subdivisions (municipals)	—		27		—		27
Other debt securities	—		37		—		37
Total debt securities available for sale	420		2,834		—		3,254
Loans held for sale	—		150		—		150






Derivative financial instruments
Trading	—		109		—		109
Not for trading	—		2		5		7
Total derivative financial instruments	—		111		5		116
Total assets measured at fair value on a recurring basis	$	420	$	3,095	$	5	$	3,520
Liabilities Measured at Fair Value
Derivative financial instruments
Trading	$	—	$	324	$	—	$	324
Not for trading	—		4		—		4
Total derivative financial instruments	—		328		—		328
Total liabilities measured at fair value on a recurring basis	$	—	$	328	$	—	$	328

Schedule of Additional Information about Assets Measured at Fair Value on Recurring Basis

The following table presents additional information about assets measured at fair value on a recurring basis and for which we have utilized Level 3 inputs to determine fair value:

TABLE 25.3


(in millions)	Other Debt Securities		Loans Receivable		Interest Rate Lock Commitments		Total
Year Ended December 31, 2024
Balance at beginning of period	$	—	$	—	$	5	$	5




Purchases, issuances, sales and settlements:

Issuances	—		—		1		1

Settlements	—		—		(5)		(5)

Transfers into Level 3	—		53		—		53
Balance at end of period	$	—	$	53	$	1	$	54
Year Ended December 31, 2023
Balance at beginning of period	$	—	$	—	$	—	$	—




Purchases, issuances, sales and settlements:

Issuances	—		—		6		6

Settlements	—		—		(1)		(1)


Balance at end of period	$	—	$	—	$	5	$	5

Schedule of Additional Information about Assets Measured at Fair Value on Non-Recurring Basis

For assets measured at fair value on a non-recurring basis still held at the Balance Sheet date, the following table provides the hierarchy level and the fair value of the related assets or portfolios:

TABLE 25.4


(in millions)	Level 1		Level 2		Level 3		Total
December 31, 2024
Collateral dependent loans	$	—	$	—	$	105	$	105

Other assets - MSRs	—		—		1		1
Other assets - SBA servicing asset	—		—		1		1
Other real estate owned	—		—		2		2
December 31, 2023
Collateral dependent loans	$	—	$	—	$	35	$	35
Indirect installment loans held for sale	—		—		338		338
Other assets - MSRs	—		—		12		12
Other assets - SBA servicing asset	—		—		1		1
Other real estate owned	—		—		2		2

Schedule of Fair Values of Financial Instruments

The fair values of our financial instruments are as follows:

TABLE 25.5


					Fair Value Measurements
(in millions)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
December 31, 2024
Financial Assets
Cash and cash equivalents	$	2,419	$	2,419	$	2,419	$	—	$	—
Debt securities available for sale	3,466		3,466		274		3,192		—
Debt securities held to maturity	3,979		3,644		1		3,643		—
Net loans and leases, including loans held for sale	33,734		32,648		—		214		32,434
Loan servicing rights	72		88		—		—		88

Derivative assets	117		117		—		116		1
Accrued interest receivable	164		164		164		—		—
Financial Liabilities
Deposits	37,107		37,070		29,607		7,463		—
Short-term borrowings	1,256		1,256		1,256		—		—
Long-term borrowings	3,012		3,004		—		1,748		1,256
Derivative liabilities	313		313		—		309		4
Accrued interest payable	65		65		65		—		—
December 31, 2023
Financial Assets
Cash and cash equivalents	$	1,576	$	1,576	$	1,576	$	—	$	—
Debt securities available for sale	3,254		3,254		420		2,834		—
Debt securities held to maturity	3,911		3,593		—		3,593		—
Net loans and leases, including loans held for sale	32,405		30,641		—		150		30,491
Loan servicing rights	61		73		—		—		73

Derivative assets	116		116		—		111		5
Accrued interest receivable	160		160		160		—		—
Financial Liabilities
Deposits	34,711		34,654		28,496		6,158		—
Short-term borrowings	2,506		2,505		2,505		—		—
Long-term borrowings	1,971		1,928		—		1,192		736
Derivative liabilities	328		328		—		328		—
Accrued interest payable	69		69		69		—		—

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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