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DERIVATIVES (Tables)
 9 Months Ended
Sep. 30, 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:
September 30, 2025December 31, 2024
(dollars in millions)Notional AmountDerivative AssetsDerivative LiabilitiesNotional AmountDerivative AssetsDerivative Liabilities
Derivatives designated as hedging instruments:
Interest rate contracts
$72,437 $303 $2 $69,077 $402 $5 
Derivatives not designated as hedging instruments:
Interest rate contracts
183,555 189 487 171,193 160 905 
Foreign exchange contracts42,050 563 399 34,749 472 411 
Commodities contracts1,213 438 381 1,136 429 379 
TBA contracts5,034 7 13 2,714 10 8 
Other contracts1,221 23 4 615 3 2 
Total derivatives not designated as hedging instruments233,073 1,220 1,284 210,407 1,074 1,705 
Total gross derivatives305,510 1,523 1,286 279,484 1,476 1,710 
Less: Gross amounts offset in the Consolidated Balance Sheets(1)
(379)(379)(391)(391)
Less: Cash collateral applied(1)
(423)(169)(677)(99)
Total net derivatives presented in the Consolidated Balance Sheets$721 $738 $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 September 30, 2025
Gains (losses) on fair value hedges recognized on:
Hedged items
$12 ($3)
Derivatives
(12)3 
Amounts related to interest settlements on derivatives
14 (3)
Total net interest income recognized on fair value hedges
$14 ($3)
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 derivatives34 (4)
Total net interest income recognized on fair value hedges
$30 ($4)
Nine Months Ended September 30, 2025
Gains (losses) on fair value hedges recognized on:
Hedged items
$178 ($7)
Derivatives
(180)7 
Amounts related to interest settlements on derivatives38 (8)
Total net interest income recognized on fair value hedges
$36 ($8)
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)
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, 2025December 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)
$9,728 $— $9,557 $— 
Carrying amount of hedged liabilities— 499 — 491 
Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items83 (1)(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 September 30, 2025 and December 31, 2024, the amortized cost basis of the closed portfolios used in these hedging relationships was $6.0 billion and $6.4 billion, respectively, including associated cumulative basis adjustments of $37 million and $(75) million, respectively. The amount of the designated hedging instruments was $4.7 billion at September 30, 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 September 30,Nine Months Ended September 30,
(dollars in millions)2025202420252024
Pre-tax net gains (losses) recognized in OCI
($21)$613 $376 ($114)
Pre-tax net gains (losses) reclassified from AOCI into interest income
(193)(276)(591)(711)
Pre-tax net gains (losses) reclassified from AOCI into noninterest income
(4)— (5)— 
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)2025202420252024
Economic hedge type:
Customer interest rate contracts($17)$474 $218 ($209)Foreign exchange and derivative products
Derivatives hedging interest rate risk29 (467)(190)233 Foreign exchange and derivative products
Customer foreign exchange contracts(72)151 345 18 Foreign exchange and derivative products
Derivatives hedging foreign exchange risk107 (195)(423)(13)Foreign exchange and derivative products
Customer commodity contracts(122)(193)(81)(126)Foreign exchange and derivative products
Derivatives hedging commodity price risk125 198 96 141 Foreign exchange and derivative products
Residential loan commitments4 9 13 2 Mortgage banking fees
Derivatives hedging residential loan commitments and mortgage loans held for sale, at fair value
(14)(24)(28)(15)Mortgage banking fees
Derivative contracts used to hedge residential MSRs(1)47 26 (9)Mortgage banking fees
Derivative contracts used to hedge equity price risk
4 — 15 — 
Capital markets fees
Total$43 $— ($9)$22