LOAN SERVICING (Tables) - Mortgage Servicing Rights

3 Months Ended

Mar. 31, 2025

Servicing Assets at Fair Value [Line Items]

Schedule of Servicing Asset at Amortized Cost

The unpaid principal balance of mortgage loans serviced for others is listed below:

TABLE 6.1

(in millions)	March 31, 2025		December 31, 2024
Mortgage loans sold with servicing retained	$	6,603	$	6,429

The following table summarizes activity relating to mortgage loans sold with servicing retained:

TABLE 6.2

	Three Months Ended March 31,
(in millions)	2025		2024
Mortgage loans sold with servicing retained	$	312	$	316
Pre-tax net gains (losses) resulting from above loan sales (1)	4		6
Mortgage servicing fees (1)	4		4

(1) Recorded in mortgage banking operations on the Consolidated Statements of Income.

Following is a summary of activity relating to MSRs:

TABLE 6.3

	Three Months Ended March 31,
(in millions)	2025		2024
Balance at beginning of period	$	70.5	$	59.5
Additions	3.5		3.9
Payoffs and curtailments	(0.8)		(0.5)
Impairment (charge) / recovery	(0.1)		0.2
Amortization / other	(0.5)		(0.6)
Balance at end of period	$	72.6	$	62.5
Fair value, beginning of period	$	86.3	$	71.8
Fair value, end of period	84.8		75.2

Schedule of Assumptions for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement

Following is a summary of the sensitivity of the fair value of MSRs to changes in key assumptions:

TABLE 6.4

(dollars in millions)	March 31, 2025			December 31, 2024
Weighted average life (months)	92			96
Constant prepayment rate (annualized)	8.1		%	7.6		%
Discount rate	10.1		%	10.3		%
Effect on fair value due to change in interest rates:
+2.00%	$	10		$	6
+1.00%	7			5
+0.50%	5			3
+0.25%	3			2
-0.25%	(3)			(2)
-0.50%	(6)			(5)
-1.00%	(12)			(11)
-2.00%	(21)			(20)
-3.00%	(39)			(34)