DERIVATIVES (Tables)

3 Months Ended

Mar. 31, 2025

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:

	March 31, 2025			December 31, 2024
(dollars in millions)	Notional Amount	Derivative Assets	Derivative Liabilities	Notional Amount	Derivative Assets	Derivative Liabilities
Derivatives designated as hedging instruments:
Interest rate contracts	$72,140	$284	$10	$69,077	$402	$5
Derivatives not designated as hedging instruments:
Interest rate contracts	163,936	175	674	171,193	160	905
Foreign exchange contracts	36,876	318	326	34,749	472	411
Commodities contracts	1,133	689	634	1,136	429	379
TBA contracts	3,167	2	10	2,714	10	8
Other contracts	1,080	9	3	615	3	2
Total derivatives not designated as hedging instruments	206,192	1,193	1,647	210,407	1,074	1,705
Total gross derivatives	278,332	1,477	1,657	279,484	1,476	1,710
Less: Gross amounts offset in the Consolidated Balance Sheets(1)		(411)	(411)		(391)	(391)
Less: Cash collateral applied(1)		(306)	(363)		(677)	(99)
Total net derivatives presented in the Consolidated Balance Sheets		$760	$883		$408	$1,220

(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 March 31, 2025
Gains (losses) on fair value hedges recognized on:
Hedged items	$116	($2)
Derivatives	(118)	2
Amounts related to interest settlements on derivatives	11	(2)
Total net interest income recognized on fair value hedges	$9	($2)
Three Months Ended March 31, 2024
Gains (losses) on fair value hedges recognized on:
Hedged items	($135)	$3
Derivatives	139	(3)
Amounts related to interest settlements on derivatives	25	(4)
Total net interest income recognized on fair value hedges	$29	($4)

The following table reflects amounts recorded in the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges:    

(dollars in millions)	March 31, 2025		December 31, 2024
	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(2)	$9,623	$—	$9,557	$—
Carrying amount of hedged liabilities	—	494	—	491
Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items	20	(6)	(97)	(8)

(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 March 31, 2025 and December 31, 2024, the amortized cost basis of the closed portfolios used in these hedging relationships was $6.3 billion and $6.4 billion, respectively, including associated cumulative basis adjustments of $(2) million and $(75) million, respectively. The amount of the designated hedging instruments was $4.7 billion at March 31, 2025 and December 31, 2024.

(2) Carrying amount represents amortized cost.

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 March 31,
(dollars in millions)	2025	2024
Pre-tax net gains (losses) recognized in OCI	$284	($550)
Pre-tax net gains (losses) reclassified from AOCI into interest income	(202)	(203)
Pre-tax net gains (losses) reclassified from AOCI into interest expense	—	—

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 March 31,		Affected Line Item in the Consolidated Statements of Operations
(dollars in millions)	2025	2024
Economic hedge type:
Customer interest rate contracts	$165	($494)	Foreign exchange and derivative products
Derivatives hedging interest rate risk	(157)	503	Foreign exchange and derivative products
Customer foreign exchange contracts	98	(110)	Foreign exchange and derivative products
Derivatives hedging foreign exchange risk	(131)	145	Foreign exchange and derivative products
Customer commodity contracts	343	35	Foreign exchange and derivative products
Derivatives hedging commodity price risk	(336)	(32)	Foreign exchange and derivative products
Residential loan commitments	6	(2)	Mortgage banking fees
Derivatives hedging residential loan commitments and mortgage loans held for sale, at fair value	(13)	3	Mortgage banking fees
Derivative contracts used to hedge residential MSRs	22	(38)	Mortgage banking fees
Total	($3)	$10