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DERIVATIVES (Tables)
 9 Months Ended
Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of derivative instruments in consolidated balance sheets
The following table presents derivative instruments included in the Consolidated Balance Sheets:
September 30, 2024December 31, 2023
(dollars in millions)Notional AmountDerivative AssetsDerivative LiabilitiesNotional AmountDerivative AssetsDerivative Liabilities
Derivatives designated as hedging instruments:
Interest rate contracts
$58,145 $327 $50 $86,895 $173 $44 
Derivatives not designated as hedging instruments:
Interest rate contracts
183,770 338 690 185,993 291 1,105 
Foreign exchange contracts31,579 371 306 32,528 434 378 
Commodities contracts1,136 536 476 1,251 685 640 
TBA contracts3,357 3 12 2,337 3 16 
Other contracts853 6 9 549 7 — 
Total derivatives not designated as hedging instruments220,695 1,254 1,493 222,658 1,420 2,139 
Total gross derivatives278,840 1,581 1,543 309,553 1,593 2,183 
Less: Gross amounts offset in the Consolidated Balance Sheets(1)
(405)(405)(471)(471)
Less: Cash collateral applied(1)
(590)(126)(682)(150)
Total net derivatives presented in the Consolidated Balance Sheets$586 $1,012 $440 $1,562 
(1) Amounts represent the impact of enforceable master netting agreements that allow the Company to net settle positive and negative positions, as well as collateral paid and received.
Schedule of fair value hedges
The following table presents the effect of fair value hedges on the Consolidated Statements of Operations and the respective line items affected for each hedged item:
Location and Amount of Gains (Losses) Recognized
Interest Income
Interest Expense
(dollars in millions)
Investment Securities
Long-Term Borrowed Funds
Three Months Ended September 30, 2024
Gains (losses) on fair value hedges recognized on:
Hedged items
$302 ($8)
Derivatives
(306)8 
Amounts related to interest settlements on derivatives
34 (4)
Total net interest income recognized on fair value hedges
$30 ($4)
Three Months Ended September 30, 2023
Gains (losses) on fair value hedges recognized on:
Hedged items
($16)$1 
Derivatives
16 (1)
Amounts related to interest settlements on derivatives3 (4)
Total net interest income recognized on fair value hedges
$3 ($4)
Nine Months Ended September 30, 2024
Gains (losses) on fair value hedges recognized on:
Hedged items
$128 ($8)
Derivatives
(127)8 
Amounts related to interest settlements on derivatives87 (11)
Total net interest income recognized on fair value hedges
$88 ($11)
Nine Months Ended September 30, 2023
Gains (losses) on fair value hedges recognized on:
Hedged items
($28)$— 
Derivatives
28 — 
Amounts related to interest settlements on derivatives4 (12)
Total net interest income recognized on fair value hedges
$4 ($12)
The following table reflects amounts recorded in the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges:    
(dollars in millions)September 30, 2024December 31, 2023
Debt securities available for sale(1)
Long-term borrowed funds
Debt securities available for sale(1)
Long-term borrowed funds
Carrying amount of hedged assets$10,510 $— $7,253 $— 
Carrying amount of hedged liabilities— 491 — 483 
Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items176 (8)60 (17)
(1) Includes the amortized cost basis of closed portfolios used to designate hedging relationships under the portfolio layer method. The hedged item is a layer of the closed portfolio which is expected to be remaining at the end of the hedging relationship. As of September 30, 2024 and December 31, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $6.7 billion and $5.9 billion, respectively, including associated cumulative basis adjustments of $95 million and $39 million, respectively. The amount of the designated hedging instruments was $4.8 billion and $4.0 billion at September 30, 2024 and December 31, 2023, respectively.
Schedule of effect of cash flow hedges on net income and stockholders' equity
The following table presents the pre-tax net gains (losses) recorded in the Consolidated Statements of Operations and in the Consolidated Statements of Comprehensive Income related to derivative instruments designated as cash flow hedges:
Three Months Ended September 30,Nine Months Ended September 30,
(dollars in millions)2024202320242023
Pre-tax net gains (losses) recognized in OCI
$613 ($326)($114)($773)
Pre-tax net gains (losses) reclassified from AOCI into interest income
(276)(156)(711)(420)
Pre-tax net gains (losses) reclassified from AOCI into interest expense
— (1)— — 
Schedule of effect of derivative Instruments on net income
The following table presents the effect of economic hedges on noninterest income:
Amounts Recognized in
Noninterest Income for the
Three Months Ended September 30,Nine Months Ended September 30,Affected Line Item in the Consolidated Statements of Operations
(dollars in millions)2024202320242023
Economic hedge type:
Customer interest rate contracts$474 ($448)($209)($1,028)Foreign exchange and derivative products
Derivatives hedging interest rate risk(467)460 233 1,068 Foreign exchange and derivative products
Customer foreign exchange contracts151 (77)18 (72)Foreign exchange and derivative products
Derivatives hedging foreign exchange risk(195)141 (13)121 Foreign exchange and derivative products
Customer commodity contracts(193)168 (126)(401)Foreign exchange and derivative products
Derivatives hedging commodity price risk198 (158)141 430 Foreign exchange and derivative products
Residential loan commitments9 (21)2 (39)Mortgage banking fees
Derivatives hedging residential loan commitments and mortgage loans held for sale, at fair value
(24)30 (15)45 Mortgage banking fees
Derivative contracts used to hedge residential MSRs47 (76)(9)(91)Mortgage banking fees
Total$— $19 $22 $33