XML 32 R19.htm IDEA: XBRL DOCUMENT v3.25.3
FAIR VALUE MEASUREMENTS
 9 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS
NOTE 12 - FAIR VALUE MEASUREMENTS
The Company measures or monitors many of its assets and liabilities on a fair value basis. Fair value is used on a recurring basis for assets and liabilities for which fair value is the required or elected measurement basis of accounting. Fair value is also used on a nonrecurring basis to evaluate assets for impairment or for disclosure purposes. Nonrecurring fair value adjustments typically involve the application of lower of cost or market accounting or write-downs of individual assets. Fair value measurement guidance is also applied to disclosures in this Note related to assets and liabilities that are not required to be reported at fair value in the financial statements.
For more information on the measurement of fair value for the Company’s assets and liabilities, including the election of the fair value option and valuation techniques utilized to measure fair value on a recurring and nonrecurring basis, see Note 20 in the Company’s 2024 Form 10-K.
Fair Value Option
The Company has elected to account for residential mortgage LHFS and certain commercial LHFS at fair value. The following table presents the difference between the aggregate fair value and the aggregate unpaid principal balance of LHFS measured at fair value:
September 30, 2025December 31, 2024
(dollars in millions)Aggregate Fair ValueAggregate Unpaid PrincipalAggregate Fair Value Greater (Less) Than Aggregate Unpaid PrincipalAggregate Fair ValueAggregate Unpaid PrincipalAggregate Fair Value Greater (Less) Than Aggregate Unpaid Principal
Residential mortgage loans held for sale
$592 $573 $19 $633 $625 $8 
Commercial loans held for sale
176 186 (10)192 199 (7)
Recurring Fair Value Measurements
The Company utilizes a variety of valuation techniques to measure its assets and liabilities at fair value on a recurring basis. The following table presents assets and liabilities measured at fair value, including gross derivative assets and liabilities, on a recurring basis at September 30, 2025:
(dollars in millions)TotalLevel 1Level 2Level 3
Debt securities available for sale:
Mortgage-backed securities$30,814 $— $30,814 $— 
Collateralized loan obligations90 — 90 — 
State and political subdivisions1 — 1 — 
U.S. Treasury and other4,514 4,514 — — 
Total debt securities available for sale35,419 4,514 30,905 — 
Loans held for sale:
Residential loans held for sale
592 — 592 — 
Commercial loans held for sale
176 — 176 — 
Total loans held for sale, at fair value
768 — 768 — 
Mortgage servicing rights1,430 — — 1,430 
Derivative assets:
Interest rate contracts492 — 492 — 
Foreign exchange contracts563 — 563 — 
Commodities contracts438 — 438 — 
TBA contracts7 — 7 — 
Other contracts23 — 15 8 
Total derivative assets1,523 — 1,515 8 
Equity securities, at fair value(1)
224 224 — — 
Short-term investments
73 30 43 — 
Total assets$39,437 $4,768 $33,231 $1,438 
Derivative liabilities:
Interest rate contracts$489 $— $489 $— 
Foreign exchange contracts399 — 399 — 
Commodities contracts381 — 381 — 
TBA contracts13 — 13 — 
Other contracts4 — — 4 
Total derivative liabilities1,286 — 1,282 4 
Short-term borrowed funds
213 203 10 — 
Other liabilities
162 — 162 — 
Total liabilities$1,661 $203 $1,454 $4 
(1) Excludes investments of $62 million included in Other assets in the Consolidated Balance Sheets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient. These investments include capital contributions to private investment funds and have unfunded capital commitments of $17 million at September 30, 2025, which may be called at any time during prescribed time periods. The credit exposure is generally limited to the carrying amount of investments made and unfunded capital commitments.
The following table presents assets and liabilities measured at fair value, including gross derivative assets and liabilities, on a recurring basis at December 31, 2024:
(dollars in millions)TotalLevel 1Level 2Level 3
Debt securities available for sale:
Mortgage-backed securities$29,055 $— $29,055 $— 
Collateralized loan obligations184 — 184 — 
State and political subdivisions1 — 1 — 
U.S. Treasury and other3,525 3,525 — — 
Total debt securities available for sale32,765 3,525 29,240 — 
Loans held for sale:
Residential loans held for sale
633 — 633 — 
Commercial loans held for sale
192 — 192 — 
Total loans held for sale, at fair value
825 — 825 — 
Mortgage servicing rights1,491 — — 1,491 
Derivative assets:
Interest rate contracts562 — 562 — 
Foreign exchange contracts472 — 472 — 
Commodities contracts429 — 429 — 
TBA contracts10 — 10 — 
Other contracts3 — — 3 
Total derivative assets1,476 — 1,473 3 
Equity securities, at fair value(1)
162 162 — — 
Short-term investments
53 40 13 — 
Total assets$36,772 $3,727 $31,551 $1,494 
Derivative liabilities:
Interest rate contracts$910 $— $910 $— 
Foreign exchange contracts411 — 411 — 
Commodities contracts379 — 379 — 
TBA contracts8 — 8 — 
Other contracts2 — — 2 
Total derivative liabilities1,710 — 1,708 2 
Short-term borrowed funds
— — — — 
Other liabilities
101 — 101 — 
Total liabilities$1,811 $— $1,809 $2 
(1) Excludes investments of $58 million included in Other assets in the Consolidated Balance Sheets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient. These investments include capital contributions to private investment funds and have unfunded capital commitments of $24 million at December 31, 2024, which may be called at any time during prescribed time periods. The credit exposure is generally limited to the carrying amount of investments made and unfunded capital commitments.
The following tables present a roll forward of assets and liabilities measured at fair value on a recurring basis and classified as Level 3:
Three Months Ended September 30, 2025Nine Months Ended September 30, 2025
(dollars in millions)Mortgage Servicing RightsOther Derivative ContractsMortgage Servicing RightsOther Derivative Contracts
Beginning balance$1,426 $15 $1,491 $1 
Issuances42 21 117 55 
Sales(1)
— — (72)— 
Settlements(2)
(41)(33)(120)(60)
Changes in fair value recognized in earnings(3)
3 1 14 8 
Ending balance$1,430 $4 $1,430 $4 
Three Months Ended September 30, 2024Nine Months Ended September 30, 2024
(dollars in millions)Mortgage Servicing RightsOther Derivative ContractsMortgage Servicing RightsOther Derivative Contracts
Beginning balance$1,568 $6 $1,552 $7 
Issuances28 18 71 47 
Settlements(2)
(46)(27)(135)(50)
Changes in fair value recognized in earnings(3)
(49)— 13 (7)
Ending balance$1,501 ($3)$1,501 ($3)
(1) For MSRs, represents the sale of the excess servicing yield on MSRs.
(2) For MSRs, represents changes in value of the MSRs due to i) the passage of time including the impact from both regularly scheduled loan principal payments and partial paydowns, and ii) loans that paid off during the period. For other derivative contracts, represents the closeout of interest rate lock commitments and other cash payments.
(3) Represents changes in fair value primarily driven by market conditions. These changes are recorded in Mortgage banking fees and Other income in the Consolidated Statements of Operations.
The following table presents quantitative information about significant unobservable inputs utilized to measure the fair value of Level 3 assets and liabilities:
September 30, 2025December 31, 2024
Financial Instrument(1)
Valuation TechniqueUnobservable InputRange (Weighted Average)Range (Weighted Average)
Mortgage servicing rightsDiscounted Cash FlowConstant prepayment rate
5.86-14.80% CPR (7.10% CPR)
5.08-16.32% CPR (6.70% CPR)
Option adjusted spread
398-1,058 bps (608 bps)
398-1,058 bps (632 bps)
Other derivative contractsInternal ModelPull through rate
8.15-99.89% (83.07%)
5.09-99.90% (83.06%)
MSR value
42.30-171.00 bps (124.76 bps)
23.91-171.64 bps (121.23 bps)
(1) Disclosures related to the fair value measurement of financial instruments deemed immaterial are not included.
Nonrecurring Fair Value Measurements
Fair value is also used on a nonrecurring basis to evaluate certain assets for impairment or for disclosure purposes. The following table presents losses on assets measured at fair value on a nonrecurring basis and recorded in earnings:
Three Months Ended September 30,Nine Months Ended September 30,
(dollars in millions)2025202420252024
Collateral-dependent loans ($39)($36)($124)($156)

The following table presents assets measured at fair value on a nonrecurring basis:
September 30, 2025December 31, 2024
(dollars in millions)TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3
Collateral-dependent loans $677 $— $677 $— $979 $— $979 $— 
Fair Value of Financial Instruments
The following tables present the estimated fair value for financial instruments not recorded at fair value in the Consolidated Financial Statements. The carrying amounts are recorded in the Consolidated Balance Sheets under the indicated captions.
September 30, 2025
TotalLevel 1Level 2Level 3
(dollars in millions)Carrying ValueEstimated Fair ValueCarrying ValueEstimated Fair ValueCarrying ValueEstimated Fair ValueCarrying ValueEstimated Fair Value
Financial assets(1):
Debt securities held to maturity$8,124 $7,295 $— $— $7,767 $6,938 $357 $357 
Loans held for sale
566 566 — — — — 566 566 
Net loans and leases138,898 138,627 — — 677 677 138,221 137,950 
Other assets710 710 — — 689 689 21 21 
Financial liabilities:
Deposits180,011 179,967 — — 180,011 179,967 — — 
Short-term borrowed funds1 1 — — 1 1 — — 
Long-term borrowed funds10,441 10,649 — — 10,441 10,649 — — 
December 31, 2024
TotalLevel 1Level 2Level 3
(dollars in millions)Carrying ValueEstimated Fair ValueCarrying ValueEstimated Fair ValueCarrying ValueEstimated Fair ValueCarrying ValueEstimated Fair Value
Financial assets(1):
Debt securities held to maturity $8,599 $7,540 $— $— $8,187 $7,136 $412 $404 
Loans held for sale
33 33 — — — — 33 33 
Net loans and leases137,142 136,293 — — 979 979 136,163 135,314 
Other assets710 710 — — 689 689 21 21 
Financial liabilities:
Deposits174,776 174,651 — — 174,776 174,651 — — 
Long-term borrowed funds12,401 12,247 — — 12,401 12,247 — — 
(1) Excludes cash-related financial instruments not recorded at fair value in the Consolidated Balance Sheets with a carrying value and estimated fair value of $12.3 billion and $11.2 billion at September 30, 2025 and December 31, 2024, respectively.